Essay
Suppose a firm's hourly marginal product of labour is given by MPN = A(200 - N).
a.If A = .2 and the real wage is $10 per hour,how much labour will the firm want to hire?
b.Suppose the real wage rate rises to $20 per hour.How much labour will the firm want to hire?
c.With the real wage rate at $10 per hour,how much labour will the firm want to hire if A rises to .5?
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a.The firm will hire labour such that w ...View Answer
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