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The following table includes the supply of labor and Marginal Revenue Product of Labor information for a candy shop. Wage ($) Supply of Labor Hours
The following table includes the supply of labor and Marginal Revenue Product of Labor information for a candy shop.
Wage ($) | Supply of Labor Hours | MRPL | Total Labor Cost | Marginal Expense of Labor |
4 | 18 | 29 | (1) | (6) |
5 | 19 | 27 | (2) | (7) |
6 | 20 | 25 | (3) | (8) |
7 | 21 | 23 | (4) | (9) |
8 | 22 | 21 | (5) | (10) |
1. (1-10) Calculate the total labor cost and the marginal expense of labor for each level of employment?
2. If the candy shop is maximizing profits, how many hours of labor will be hired? What will be the offered wage?
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