Q1. Below is productivity data for firm Nearly Done Inc. which purchases resources in a perfectly competitive factor market.

1.Refer to the above information what quantity of labour will Nearly Done Inc. employ if the market wage rate is $8?.

2. What is Nearly Done's total revenue if the market wage rate is $8.

3. What is Nearly Done's total wage bill if the market wage rate is $8?

4. What is Nearly Done's total profit or loss if the market wage rate is $8, total fixed costs are $24 and labour costs are the only variable costs?

5. In what type of market does Nearly Done Inc. sell its output/product?Explain

6. Suppose that the market wage rate is $8, how much more labour will Nearly Done Inc. employ if the marginal product of labour doubles due to technological development?

7. What quantity of labour will Nearly Done Inc. employ now and what will its total revenue be if the market wage rate is $4?

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