The nation of Ectenia has 80 competitive apple orchards, which sell apples at the world price of $2 per apple. The following equations describe the production function and the marginal product of labor in each orchard:

Q

=

80LL2

MPL

=

802L

where Q

is the number of apples produced in a day, Lis the number of workers, and MPL

is the marginal product of labor.

What is each orchard's labor demand as a function of the daily wage W

?

A.) L=802W

B.) L=3,20020W

C.) L=400.5W

D.) L=400.25W

What is the market's labor demand?

A.) L=3,20020W

B.) L=3,2000.25W

C.) L=400.25W

D.) L=8020W

Ectenia has 1,200 workers who supply their labor inelastically.

The equilibrium wage is $______ per worker per day. Each orchard hires $______ workers and makes a profit of $_______ per day. (Note: Assume that wages are the firm's only costs.)