(Solved): Consider Blewitt's Farm, a small blueberry grower relative to the size of the market whose product ...

Consider Blewitt's Farm, a small blueberry grower relative to the size of the market whose production has no impact on wages and prices. The following table presents Blewitt's production schedule for blueberries: Suppose that the market wage for blueberry pickers is \( \$ 100 \) per worker per day, and the price of blueberries is \( \$ 18 \) per pound. On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is \( \$ 18 \) per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1 , the value of the marginal product of for the first worker should be plotted with a horizontal coordinate of \( 0.5 \), the value halfway between 0 and 1 . Line segments will automatically connect the points. At the given wage and price level, Blewitt's should hire Suppose that the price of blueberries decreases to \( \$ 14 \) per pound, but the wage rate remains at \( \$ 100 \). On the previous graph, use the purple points (diamond symbol) to piot Blewitt's labor demand curve when the output price is \( \$ 14 \) per pound. Now Blewitt's should hire when the output price is \( \$ 14 \) per pound. Assuming that all blueberry-producing firms have similar production schedules, a decrease in the price of bluaberries will cause the blueberry pickers to Suppose that wages decrease to \( \$ 90 \) due to a decreased demand for workers in this market. Assuming that the price of blueberries remains at \( \$ 14 \) per pound, Blewitt's will now hire