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Teddy Earns $20 Per Hour

Question 95

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Teddy earns $20 per hour. His boss asks him if he would like to work overtime. For his overtime hours, he would be paid $30 an hour. The marginal tax rate for the overtime hours is 90%. Should Teddy agree to work overtime? Explain your answer.

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It depends on how much Teddy needs the m...

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