1

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3

4

5

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10

8

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1

TABLE 14.10

$4

$4

$4

$4

$4

$4

a. What is the value of the marginal product at each level of labor?

b.

If the firm operates in a perfectly competitive labor market where the going market wage is $12, what

is the firm’s profit maximizing level of employment?

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2. Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a

monopoly’s marginal revenue.

Labor Marginal Product of Labor Price of the Product

14 • Self-Check Questions 355

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1

TABLE 14.11

$10

$7

$5

$4

$2

$1

a. What is the monopoly’s marginal revenue product at each level of employment?

b.

If the monopoly operates in a perfectly competitive labor market where the going market wage is $20,

what is the firm’s profit maximizing level of employment?

3. Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the
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