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Paper Pushers Inc If the Price of Each Page Increases, Then the Demand

Question 36

Multiple Choice

Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table.  Warkers  Puges/huur 0014027531054125514061507155\begin{array} { | c | c | } \hline \text { Warkers } & \text { Puges/huur } \\\hline 0 & 0 \\\hline 1 & 40 \\\hline 2 & 75 \\\hline 3 & 105 \\\hline 4 & 125 \\\hline 5 & 140 \\\hline 6 & 150 \\\hline 7 & 155 \\\hline\end{array}  
If the price of each page increases, then the demand for workers will


A) remain the same because changes in the output market will not affect the demand for labor.
B) increase because the workers will be motivated to produce more.
C) increase because the value of the marginal product of labor will increase.
D) decrease because at a higher sales price the firm will not have to produce as much output.

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