Now draw the W/MRP Labor Market Diagram associated with the table above on the area indicated on your exam sheet. Draw this as we did in the lectures, being sure to be clear on the areas that represent:

• labor costs,
• MRP (label the curve exactly as we did in lectures and homework), and
• the profit or loss (with actual numbers)
• Identify L* (as we did in lectures)

Use different colors if at all possible.

Label this initial point where the firm maximizes profit as point A.