2. Suppose that a competitive firm is facing the following Marginal Revenue
Product and Average Revenue Product curves.
a.If the wage rate is $20, how many workers will the firm hire? Explain your
answer.
b. If the wage rate is $30, how many workers will the firm hire? Explain your
answer.
c. If the wage is $60, how many workers will the firm hire? How much output will
the firm produce? Explain how you found this answer.
Product and Average Revenue Product curves.
a.If the wage rate is $20, how many workers will the firm hire? Explain your
answer.
b. If the wage rate is $30, how many workers will the firm hire? Explain your
answer.
c. If the wage is $60, how many workers will the firm hire? How much output will
the firm produce? Explain how you found this answer.
