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Labor Economics 5th Edition by George Borjas
Edition 5ISBN: 978-0073511368Labor Economics 5th Edition by George Borjas
Edition 5ISBN: 978-0073511368 Exercise 18
The relationship between a worker's daily wage, w , and her daily output, q , is
q = 0.1 w 2 2 - 0.0005 w 3
so that the worker's marginal product with respect to her wage is
MP w = 0.2 w - 0.0015 w 2.
What is the optimal efficiency daily wage for the firm to pay How much output will the worker produce each day How much profit does the firm earn on the worker's output each day if the price of output is fixed at $0.80 per unit.
q = 0.1 w 2 2 - 0.0005 w 3
so that the worker's marginal product with respect to her wage is
MP w = 0.2 w - 0.0015 w 2.
What is the optimal efficiency daily wage for the firm to pay How much output will the worker produce each day How much profit does the firm earn on the worker's output each day if the price of output is fixed at $0.80 per unit.
Explanation
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The optimal efficiency wage can be deter...
Labor Economics 5th Edition by George Borjas
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