How Many Workers Do I Hire? impl WAGe Market Wage W VMPL Curve Quantity of labour
26 “How Many Workers Do I Hire?” VMPL & WAGE Quantity of labour Market Wage VMP L Curve w 0
Marginal revenue product VMP= MFC Optimal number of workers MFC VMP N= MFC MFC VMP VMP Labor Input(workers per week)
27 MFC < VMP MFC > VMP Marginal Revenue Product • VMP = MFC • Optimal number of workers Labor Input (workers per week) VMPL w0 L0 w0 = MFC
How Many Workers Do I Hire? impl WAGe Market Wage VMPL Curve Quantity of Proftit-Max labour Quantity
28 “How Many Workers Do I Hire?” VMPL & WAGE Quantity of labour Market Wage Profit-Max Quantity VMPL Curve
Individual firm demand for labor vimp Wage VMPL Curve L L0 L Quantity of labour
29 Individual firm demand for Labor VMP L & WAGE Quantity of labour w 0 L 0 VMP L Curve w 1 w 2 L 1 L 2
Individual firm demand for labor WAGE dL Quantity of labour
30 Individual firm demand for Labor WAGE Quantity of labour w 0 L 0 d L w 1 w 2 L 1 L 2