Assume some pencil workers switch to jobs

Assignment Help Business Economics

Reference no: EM1315284

Q. Lead belly Co. sells pencils in a perfectly competitive product market also hires workers in a perfectly competitive labor market. Assume which the market wage rate for workers is $150 per day.

a. Illustrate what rule should Lead belly follow to hire the profit-maximizing amount of labor?

b. At the profit-maximizing level of output, the marginal product of the last worker hired is 30 boxes of pencils per day. Compute the price of a box of pencils.

c. Draw a diagram of the labor market for pencil workers next to a diagram of the labor supply also demand for Lead belly Co. Label the equilibrium wage also quantity of labor both the market also the firm. Elucidate how are these diagrams related?

d. Assume some pencil workers switch to jobs in the growing computer industry. On the side-by-side diagrams from part (c), Elucidate how

Elucidate how this change affects the equilibrium wage also quantity of labor for both the pencil market also for Lead belly. Elucidate how does this change affect the marginal product of labor at Lead belly?"

Reference no: EM1315284

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