1. Given the following data for a perfectly competitive firm:

L Q 0 0 1 5 2 15 3 30 4 50 5 65 6 75 7 80 8 80 9 65

a. Calculate MRPL or VMPL when the price of output = $2. b. Circle portion of MRPL or VMPL that is the Labor Demand curve. c. If labor costs $30 per hour (W=$30) how much labor will be hired.

2. The table below depicts product and price data for a monopoly, L Q P 0 0 5.20

1 4 5.00 2 10 4.80 3 20 4.50 4 25 4.40 5 28 4.20 6 30 4.00 7 31 3.80

a. Determine the MRPL for the above data. (SHOW WORK) b. Circle the portion of the MRPL that is the labor demand curve. b. At a wage of $20.00 hour how many workers would be employed and why. Scanned by CamScanner