The Marginal Product of Labor Curve for Coast to Coast

question 89

Essay

The marginal product of labor curve for Coast to Coast, a standup paddle board outfitter, is MRP_L = 500 -100L, where L is the number of guides hired per week and MRP_L is dollars earned per guide per week. The prevailing market wage is $200 per week.
a. Graph both the MRP_L and the prevailing market wage in the grid provided.
b. What is the choke wage for Coast to Coast?
c. What will be the optimal amount of labor for Coast to Coast to hire?

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