Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 11

Explain how each of the following would affect the demand schedule you derived in Question 4: (a) an increase in the price of a gross substitute for labor, (b) a decrease in the price of a pure complement in production with labor, (c) a decrease in the demand for the product that the labor helps produce.
Given the data in Table A, complete the labor demand schedule shown in Table B. Contrast this schedule to the value of marginal product schedule that would exist given these data. Explain why the labor demand and VMP schedules differ.