Task: A perfectly competitive firm has a MPL = 22-L. If P = 5 and w = $10/hr:
(1) What is the optimal quantity of labor demanded?
(2) Given these circumstances, how can the firm and the employee avoid outsourcing?
(3) How does the "slacker" or "lazy" worker compound the other workers problems? This answer relates to the nature of perfect competition.
(4) given you answer to c why should an someone who has already gone to college invest in another worker's education?