- The diagram below shows the competitive market for landscaping
workers in a particular region.
a. What is the marginal revenue product of the 10 000th
hour of labour?
b. Suppose the wage is $16 per hour. Explain the forces that
would push the market’s outcome back toward
equilibrium at point D.
c. Assuming this market is in equilibrium, determine each of
the following:
total factor earnings
transfer earnings of the 10 000th hour of labour
employed
economic rent for the 10 000th hour of labour
employed
