Answer
a) Since the company is in a perfectly competitive market, the company should hire workers until the marginal revenue product is equal to the wage of 150 dollars.
b) 5 dollars per box
c) Please see the first image.
d) Please see the second image.
Work Step by Step
b) Since the marginal revenue product is 30 boxes and the wage is 150 dollars,
$150/30 =5$ dollars per box
c) The equilibrium wage in the left graph is the value of the wage paid on the right graph. (The intersection of the supply and demand curves is the equilibrium wage.) As the wage increases or decreases, so does the marginal product.
d) As there is a technological change, there will be fewer pencil workers. This shifts the demand curve on the right graph (to the left). Thus, there are fewer workers, and they are paid less. Also, the equilibrium wage (on the left graph) decreases due to the demand curve also shifting to the left.
