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Barney's Beds Currently Hires 14 Workers

Question 32

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Barney's Beds currently hires 14 workers. The average product of labor is 2 beds per day, and the marginal product of a 15th worker is expected to be three beds per day. If the firm hires the 15th worker, what will happen to the average product of labor? Explain.

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If the firm hires the 15th wor...

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