Part 1: Hiring Workers- Use the chart for a firm in a perfectly competitive labor market to answer the questions Quantity Total Marginal Workers Product Product 1. Assume that the market price of the product is $3 and the wage is $15. How many workers should be hired to maximize profit? 0 0 1 15 2. Assume that the fixed costs are $40. Calculate the profit or loss. 2 35 3. Assume that the price of the product increased to $5. How many 3 45 workers should be hired to maximize profit? 4 53 5 57 4. Assume the fixed costs stays $40. Calculate the profit or loss. 6 58 5. Assume that the government established a minimum wage of 7 56 $25, how many workers would the firm hire to maximize profit? 6. If the fixed costs are $40. Calculate the profit or loss with the $25 minimum wage and $5 price. Part 2 - Graph Practice- The graph shows the Wage MRP for a different firm hiring workers in a perfectly competitive labor market. $50 $45 7. Assume that the wage is $20. Draw a marginal resource cost (MRC) curve and identify how many $40 workers should be hired to maximize profit? $35 8. Assume that the fixed cost is $50. What is the $30 total cost of hiring the profit maximizing quantity? $25 $20 9. Assume the firm produces in a perfectly competitive product market and the price of the $15 product is $2. How much additional output did the $10 last worker produce? MRP 10. Assume instead that the wage is $30. How many workers should be hired to maximize profit? 9 Workers 11. Assume that the fixed cost stays $50. What is the total cost of hiring the profit maximizing quantity