Question 1 De Weert Consulting Inc. is an economic consulting firm that produces expert reports for business litigation. The firm hires consultants to produce these reports. The table below provides the hourly marginal product associated with each additional consultant that De Weert Consulting Inc. hires. Number of Consultants Marginal Product of Labor 2 0.045 reports 4 0.040 reports 6 0.035 reports 8 0.030 reports 10 0.025 reports 12 0.020 reports Part (i): Suppose that the price of an expert report is $5,000. That is, De Weert Inc. sells completed reports to its clients for $5,000 each. Construct the demand for labor curve. Place the quantity of workers demanded on the horizontal axis and the hourly wage on the vertical axis. $350 p...... ...;.... ....... .... ... ... ... ....... ... .!...;.. Hourly Wage ...!-. . . .. . . . ..-.;-. .... . . .;....;-.. ..... . ... ....;. $300 . .; .. . . . .-.-. .. . ...-. -. .-;.-. ... . ..!. .. . I-. .-; ... .. . .;. .. .. -. . .co. . ..-.-. .. . .... . . . .. ... .p. .-.;. .. . . . .. .. . &-..-;. $250 -. .. - . .. .. .;-. .3. .. -. .-;... .b.. ... ... ...-; . .. .. . .;. ... .- .-. .5. . ... ....... ... .... . .. .. . ..&... j-. .. ... ;....i. $200 .gap..--. .. ... ... . ...!. $150 ...-. ... ..-. ... ... .... .Q.... ...........;.. -. . . .. .. . .. .- .-. . . . .. ... . .- ... . . .... . . . .. ... .... $ 10 . . . -. .; . .. . . .. .. .;-. .-; . . . !.. ... ..... -.. . .. . . . .;. .-..-. . . . .. ; . . . .; . . . .;. .. . ; . . . .; . . . ;. . .-{ . .. .. . . .;. $50 . . . . . .. ... . ... .. . ;-. .- .-. .;- -.. .. .-.. . .. . . . .. . . .. .. .. . ... .. .....;. 2 B 10 12 14 Numberof Consultants/ Part (ii): Suppose that the price of an expert report is $5,000. If the hourly wage if $200, how many consultants will be hired? Answer: If the hourly wage is $200, then 4 consultants will be hired. Part (ili): Suppose that the price of an expert report is $5,000. If the hourly wage if $145, how many consultants will be hired? Answer: If the hourly wage is $145, then 8 workers will be hired