Answer: a. When Dream Home Builders employs 11 workers, it can increase profits by__hiring___ workers
B.When Dream Home Builders employs 11 workers, it can increase profits by__13___ workers
C. If the market wage changes to $27, Dream Home Builders would _increase___
the number of workers employed to 14__workers
D. The curve depicting the value of the marginal product of labor is also the labor __demand__curve.
Cr = (OA - DZD - SP) / CO
Cr = (A1 + A2 + A3) / (P1 + P2)
Answer: decrease, be unaffected.
Explanation:
We should note that the output in the short run can be expected to reduce in the short run. This is due to the increase in the cost of employing an employee as there's at least a fixed input in the short run.
Subsequently, since the output is variable in the long run and not fixed like that of the short run, the output won't be unaffected in the long run.