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

Exercise 1

Use the production data shown here on the left and the labor supply data on the right for a single firm to answer the following questions. Assume that this firm is selling its product for $1 per unit in a perfectly competitive product market.

a. How many workers will this firm choose to employ
b. What will be its profit-maximizing wage rate
c. What labor market model do these data best describe