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The image shows a table related to a labor market problem and includes the following columns: Wage, Quantity of Labor Supplied, Marginal Product of Labor, and Price. Below is a question asking for the wage and employment level in a perfectly competitive labor market. The table and question seem to be focused on determining the wage and number of workers employed when profit-maximizing behavior is assumed.

Here's how to analyze it:

1. **Marginal Revenue Product of Labor (MRP):** In a competitive market, firms hire workers up to the point where the marginal revenue product of labor (MRP) equals the wage. MRP is calculated as the product of the **Marginal Product of Labor (MPL)** and the **Price of the good** produced.

   The price is given as $2, so we can compute MRP for each quantity of labor as:
   
   - For Labor = 1: MRP = 1 (MPL) × 2 (Price) = 2
   - For Labor = 3: MRP = 2 × 2 = 4
   - For Labor = 7: MRP = 4 × 2 = 8
   - For Labor = 6: MRP = -1 × 2 = -2

2. **Choosing Wage and Employment:**
   The firm will hire labor until the wage equals the marginal revenue product of labor. Checking against the wages in the table:

   - Wage = $6 corresponds to Labor = 1, where MRP = 2, so the firm wouldn't hire here.
   - Wage = $7 corresponds to Labor = 3, where MRP = 4. This is still below the wage.
   - **Wage = $8 corresponds to Labor = 7, where MRP = 8**, so this is where the firm hires because MRP equals wage here.

Thus, the answer is **c. $8 and 7**.

Would you like further details or have any other questions?

Here are 5 questions to expand the discussion:
1. What is the significance of marginal product in labor economics?
2. How does a perfectly competitive labor market differ from a monopoly in hiring workers?
3. How does the marginal revenue product curve relate to a firm's demand for labor?
4. What happens when a firm hires labor beyond the point where MRP equals the wage?
5. How does the price of goods affect the marginal revenue product of labor?

**Tip:** In a perfectly competitive labor market, firms hire workers until the marginal revenue product equals the wage, ensuring profit maximization.

If a firm is hiring labor in the perfectly competitive labor market, the wage and employment will be...

In this problem, we analyze wage determination and employment levels in a perfectly competitive labor market. The solution explains how firms hire workers until the marginal revenue product of labor equals the wage, ensuring profit maximization.

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