What will the wage rate of labour be? Draw an approximate sketch of your answer. (Comment: Where MFCL = VMPL in between two whole units that cannot be divided, profit will be higher if output is stopped at the lower unit of labour hired. This is easy to see if one considers that there is a loss on the next whole unit of labour if it is hired.) R Labour If the firm is a monopolist in the pen market and can hire all the labour it at R70 per labourer, what output will it sell and what price will it charge? How many labourers will it hire? Sketch an approximate graph of your answer. R Labour Explain in words why the amount of labour employed in question 2 is different than in question 4. The firm is a monopolist in the pen market and is the only employer of labour in town. What will the labour wage rate be?
What will the wage rate of labour be? Draw an approximate sketch of your answer. (Comment: Where MFCL = VMPL in between two whole units that cannot be divided, profit will be higher if output is stopped at the lower unit of labour hired. This is easy to see if one considers that there is a loss on the next whole unit of labour if it is hired.) R Labour If the firm is a monopolist in the pen market and can hire all the labour it at R70 per labourer, what output will it sell and what price will it charge? How many labourers will it hire? Sketch an approximate graph of your answer. R Labour Explain in words why the amount of labour employed in question 2 is different than in question 4. The firm is a monopolist in the pen market and is the only employer of labour in town. What will the labour wage rate be?
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