1. An increase in the product price will cause market labor demand curve to shift out , shift in, go negative, pay workers less , while a decrease in the product price will cause market labor demand curve to shift out, shift in, slope upwards, pay workers less .
2. Fairly Decent Industries has the following production schedule. The price of the product being produced is $5 in a purely competitive market. On the following table, compute the Marginal Revenue Product for every "jump" between one level of workers and the next. Instructions: Enter your answers as whole numbers. Workers Output/Hour Marginal Product Marginal Revenue Product 2 10 4. 20 5 $ 25 6 28 4 $ 20 8 34 3 $ 15 The hourly wage for workers is $18. Assuming workers must be hired in increments as shown on the table, Fairly Decent Industries will keep hiring workers until it has: I workers, but no more.
