-The above figure shows the demand for labour curve for workers at a Pizza Hut in Darwin. If the wage rate is $6 per hour, then the i. quantity of workers Pizza Hut demands is 10 workers.
Ii) Pizza Hut would have been willing to hire the 6th worker even if it had to pay $7 per hour rather than $6 per hour.
Iii) value of the marginal product of the 10th worker is $6 per hour.

Question

Quizplus · Accepted Answer

The statements provided are consistent with the typical behavior of firms in response to wage rates and the marginal productivity of labor. i) If the wage rate is $6 per hour and the firm demands 10 workers, it implies that the 10th worker's marginal productivity equals the wage rate. ii) Willingness to hire the 6th worker at $7 suggests that the marginal productivity of the 6th worker is at least $7, making it a rational decision even at a higher wage. iii) The value of the marginal product of the 10th worker being $6 per hour aligns with the wage rate, indicating that the firm is maximizing profit by hiring workers up to the point where the value of the marginal product equals the wage rate.

-The Above Figure Shows the Demand for Labour Curve for Workers