PERFECTLY COMPETITIVE INPUT MARKET Units of Wage Market Market Labor MRP=D Rate Supply Demand $ 15 $ 15 850 14 14 800 13 13 750 12 12 700 11 11 650 10 10 600 9 550 500 a Assume that there are 100 firms with the same marginal revenue product schedules for this particular type of labor. Compute the total or market demand for this labor. (Market Demand = Units of Labor x # of firms.) b. Using the market demand and market supply schedules, what will be the equili- brium wage rate? ( Where market demand = market supply -> wage rate.) C. What will be the total (equilibrium) amount of labor hired in this market? (The level where market demand = market supply.) d. What will be the wage rate paid and the amount of labor hired by each of the 100 purely competitive firms? (Where market demand = market supply -> wage rate and the units of labor.) e. Graph the market demand and supply curves for labor and indicate the equili- brium wage rate and the total quantity of labor employed in the market. (Refer to questions "b" and "c" above.) f. Graph the firm's demand curve for labor, the supply curve for labor, and the marginal resource (labor) cost curve which confronts the individual purely com- petitive firm. Indicate the quantity of labor the firm will hire and the wage rate it will pay. (Refer to question "d" above.) g. The imposition of a $12 minimum wage rate would change the total amount of labor hired in this market to How much unemployment would be created by the imposition of a $12 minimum wage? Illustrate the $12 minimum wage and the resulting unemployment on the graph from part "e"