Reference no: EM132445827

Labor               Output                     Marginal Product

   0                          0                                      0

1,000                  700,000                            700

2,000                 1,200,000                          500

3,000                 1,500,000                          300

4,000                 1,600,000                          100

5,000                 1,600,000                            0

6,000                 1,500,000                          -100

a) Draw diagrams of the production function and labor market and label the appropriate curves. Also show the equilibrium values in this problem.

b) Show the effects of an increase in labor supply to 5,000.

c) Show the effects of a twenty percent upward shift in the production function.

By the way did i do marginal product correctly