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Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111Economics for Today 9th Edition by Irvin Tucker
Edition 9ISBN: 978-1305507111 Exercise 20
The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the relationship between the number of workers Zippy hires and total output: 
Assuming the selling price is $10 per box, answer the following questions:
A) What is the marginal revenue product (MRP) of each worker?
B) How many workers will Zippy hire if the wage rate is $100 per day?
C) How many workers will Zippy hire if the wage rate is $75 per day?
D) Assume the wage rate is $75 per day and the price of a box of paper is $20. How many workers will Zippy hire?
Assuming the selling price is $10 per box, answer the following questions:
A) What is the marginal revenue product (MRP) of each worker?
B) How many workers will Zippy hire if the wage rate is $100 per day?
C) How many workers will Zippy hire if the wage rate is $75 per day?
D) Assume the wage rate is $75 per day and the price of a box of paper is $20. How many workers will Zippy hire?
Explanation
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Verified
(a) Using the labor input and total outp...
Economics for Today 9th Edition by Irvin Tucker
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