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Andrei [34K]
3 years ago
8

Suppose there is perfect competition in the output market and the labor market and that the output price is $10 and the wage is

$350 per hour. In this case, the demand for labor by the firm equals _____ hours.
Business
1 answer:
Pani-rosa [81]3 years ago
4 0

Answer:

2 hours of labor

Explanation:

Labor is hired up to a point where the marginal product of labor * Price of the output = wage of the worker.

Thus, 35 * 10 = 350.

35 widgets are produced using 2 hours of labor.

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