A firm produces output using labor only. The table below sho…

A firm produces output using labor only. The table below shows the firm’s total output at each level of labor input. The price of the good is $10 per unit, and the wage rate is $120 per worker. How many workers will this firm hire? Number of Workers Total Output 0 0 1 15 2 28 3 40 4 47 5 53 6 58

Scenario 2Suppose the marginal product of capital is MPK=2-0…

Scenario 2Suppose the marginal product of capital is MPK=2-0.008K, the capital stock depreciates at 22% rate, the tax rate on revenues is 20% and price of capital is assumed to be 1. Furthermore, the economy has full-employment level of output of 5300, government purchases are 1200. Desired consumption is given by Cd=3300-2100r+0.11Y, where Y is output and r is expected real interest rate. Initial level of capital is 100.Refer to Scenario 2. What is goods market clearing real interest rate?