Economics 13th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson

Exercise 10

The following chart provides information on a firm that hires labor competitively and sells its product in a competitive market.

a. Fill in the missing columns.
b. How many units of labor would be employed if the market wage rate were $40? Why?
c. What would happen to employment if the wage rate rose to $50? Explain.