Use the labor demand data on the left and the labor supply data on the right in answering the following question: $\begin{array}{c}
\underline{\text { Labor Demand Data }}\quad\quad\quad\quad\quad\quad\quad\quad\underline{\text { Labor Supply Data }}\
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Product}}\
0\
14\
12\
9\
7\
4\
2
\end{array}
\begin{array}{c}
\text { Product }\
\underline{\text { Price } }\
\$ 3 \
3 \
3 \
3 \
3 \
3 \
3
\end{array}
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text { Wage}\
\underline{\text { Rate }} \
\$ 11 \
11 \
11 \
11 \
11 \
11 \
11
\end{array}
\end{array}$

Refer to the given data.The firm is hiring labor:

Question

Use the labor demand data on the left and the labor supply data on the right in answering the following question: $\begin{array}{c}
\underline{\text { Labor Demand Data }}\quad\quad\quad\quad\quad\quad\quad\quad\underline{\text { Labor Supply Data }}\
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6
\end{array}
\begin{array}{c}
\text {Marginal}\
\underline{\text {Product}}\
0\
14\
12\
9\
7\
4\
2
\end{array}
\begin{array}{c}
\text { Product }\
\underline{\text { Price } }\
\$ 3 \
3 \
3 \
3 \
3 \
3 \
3 
\end{array}
\begin{array}{c}
\
\underline{\text {Employment}}\
0\
1\
2\
3\
4\
5\
6 
\end{array}
\begin{array}{c}
\text { Wage}\
\underline{\text { Rate }} \
 \$ 11 \
11 \
11 \
11 \
11 \
11 \
11
\end{array}
\end{array}$

Refer to the given data.The firm is hiring labor:

Quizplus · Accepted Answer

The labor demand and supply data in the graph suggest that the market is in equilibrium at a wage rate of $15 per hour, where the quantity of labor demanded equals the quantity of labor supplied. Therefore, the firm is hiring labor under purely competitive conditions, where it has no market power to influence the wage rate and must accept the going market wage to hire the desired quantity of labor. There is no evidence to suggest that the firm is paying a wage rate that exceeds labor's MRP, operating in an imperfectly competitive market or as a monopsonist.

Use the Labor Demand Data on the Left and the Labor