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The diagram below shows the competitive market for landscaping workers in a particular region. C D Factor Price (S per hour) E TTTTTTT D 2000
The diagram below shows the competitive market for landscaping workers in a particular region. C D Factor Price (S per hour) E TTTTTTT D 2000 4000 8000 10 000 12000 14000 Hours of Labour per Month a. What is the marginal revenue product of the 10 000th hour of labour? b. Suppose the wage is $16 per hour. Explain the forces that would push the market's outcome back toward equilibrium at point D. c. Assuming this market is in equilibrium, determine each of the following: - total factor earnings transfer earnings of the 10 000th hour of labour employed economic rent for the 10 000th hour of labour employed transfer earnings of the 6000th hour of labour employed economic rent for the 6000th hour of labour employed d. Provide two reasons why this demand curve could shift to the right toward a new equilibrium at point F
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