The loss to the consumers can be decomposed into three pieces : gain to domestic producers, revenue for government, deadweight loss . Use the diagram to identify three pieces You are given the following schedule for the production of pens by a firm Labor Total Product 0 0 1 20 2 50 3 70 4 80 5 85 6 82 If pen sells for Rs 3 per unit and workers can be hired in a competitive labor market for Rs30 per day, how many workers should be hired? Explain your answers clearly.

The loss to the consumers can be decomposed into three pieces : gain to domestic
producers, revenue for government, deadweight loss . Use the diagram to identify three
pieces

You are given the following schedule for the production of pens by a firm
Labor Total Product
0 0
1 20
2 50
3 70
4 80
5 85
6 82

If pen sells for Rs 3 per unit and workers can be hired in a competitive labor market for Rs30
per day, how many workers should be hired? Explain your answers clearly.