Name Module 71 Featured Worksheet 2 Graphing Perfectly Competitive Labor Markets A firm hires its labor in a perfectly competitive factor market and sells its product in a perfectly competitive product market. 1. Define the marginal revenue product of labor. How is this different from the value of the marginal product of labor? 2. Use correctly labeled side-by-side graphs of market and the firm, to show each of the following: i. The equilibrium wage rate in the market ii. The labor supply curve for the firm iii. The labor demand curve for the firm iv. The number of workers the firm hires 3. How does an increase in labor productivity affect the wage rate and the number of workers hired by the firm? Illustrate using your graph above