11 Large retail firms often advertise that their “buying power” allows them to obtain goods at lower prices and hence offer lower prices to their consumers Explain the economic logic of this claim NUMERICAL PROBLEMS Suppose a firm faces the following supply schedule for labor by unskilled workers: Wage per day Number of workers $0 16 24 32 40 48 56 64 72 80 10 In terms of its supply of labor, what sort of firm is this? Explain Add columns for total factor cost and marginal factor cost and fill them in Plot the supply and marginal factor cost curves for this firm Remember to plot marginal values at the midpoints of the intervals Suppose the firm faces the following total product schedule for labor: Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 777