Ithough individual labor supply curves, such as the one own, can be backward bending, the market labor supply rve will tend to be upward sloping across all wage rates.

Describe backward bending labor supply curve by discussing the income andsubstitution effects?

Show diagrammatically how a labour supply curve can be backward bending, fully explaining using income and substitution effects. Explain why a researcher may choose to use Roy's Identity to derive estimable labour supply functions.

Complete the following labor supply table for a firm hiring labor competitively: Total Labor Cost Marginal Resource (Labor) Cost Marginal Revenue Product Units of Labor Wage Rate $14 14 $38 2 14 28 3 14 24 4 14 20 5 14 14 6 14 10 a. Show graphically this firm's labor supply and marginal resource (labor) cost curves. Instructions: (1) Use the tool provided 'MRC' to draw the marginal resource cost curve (plot 6 polnts total). (2) Use the tool provided 'MRP' to draw the marginal revenue product curve (plot 6 polnts total). To earn full credit for this graph, you must plot all required polnts for each curve. Тools MRC MRP 1. 3 4 5 6 7 Quantity of labor Wage rate (dollars)