A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below.The firm incurs weekly fixed costs of $1,800.The firm employs a single variable input,labor,which costs $600 per worker each week. Given the above,suppose the weekly wage rate increases to $1,400 per worker.The firm would hire _______ workers and earn a profit of _______ per week.

Question

A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below.The firm incurs weekly fixed costs of $1,800.The firm employs a single variable input,labor,which costs $600 per worker each week.  Given the above,suppose the weekly wage rate increases to $1,400 per worker.The firm would hire _______ workers and earn a profit of _______ per week.

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The Answer of A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below.The firm incurs weekly fixed costs of $1,800.The firm employs a single variable input,labor,which costs $600 per worker each week.  Given the above,suppose the weekly wage rate increases to $1,400 per worker.The firm would hire _______ workers and earn a profit of _______ per week.

A Manager of a Firm with Market Power Faces the Marginal