Problem
i. If an industry is producing a price inelastic product, will its labor demand curve most likely be wage elastic or wage inelastic?
ii. A firm makes a product using labor and capital. The wage rate is $20 an hour, and the cost of capital is $40 an hour. If the marginal product of capital is 80 units and hour, what must be the marginal product of labor, if the firm is maximizing profit?
iii. A profit maximizing firm's marginal revenue product of labor is $250 a day. If the wage rate is $ 200 a day, will this firm hire more workers or lay off workers?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.