Authors libby rittenberg 778

Number of workers Output per day
0

0

1

92

2

176

3

252

4

320

5

380

6

432

7

476

8

512

9

540

10

560

Compute the schedules for the firm’s marginal product and marginal
revenue product curves, assuming the price of the good the firm
produces is $1 and that the firm operates in a perfectly competitive
product market.
4. Add the marginal revenue product curve from Problem 3 to your
graph in Problem 2, and determine the number of workers the firm
will employ and the wage it will pay.
5. Now suppose the firm is required to pay a minimum wage of $48 per
day. Show what will happen to the quantity of labor the firm will hire
and the wage it will pay.
6. Suppose that the market for cranberries is perfectly competitive
and that the price is $4 per pound. Suppose that an increase in

Attributed to Libby Rittenberg and Timothy Tregarthen
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