Suppose the price of car wash returns to $5 but the wage rate increases to $80 per day.
a) What happens to the marginal product of labor? What happens to the value of marginal product? What happens to Sandy's demand for labor curve?
b) What happens to the number of workers Sandy employs? How does this number compare with the number Sandy employs when the wage rate is $60 per day?
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a) The marginal product of labor depend...View Answer
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