Table 10.2
-Refer to Table 10.2. If the price of output is $2 per unit and the wage rate is $40, how many workers should be hired?

Name: Table 10.2 -Refer to Table 10.2. If the price of output is $2 per unit and the wage rate is $40, how many workers should be hired?
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Question

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The marginal product of labor is 6 units of output per worker. At a price of $2 per unit, the marginal revenue product of labor is $12. Since the wage rate is $40, the firm should hire six workers.

Table 10.2 -Refer to Table 10.2. If the Price of Output Is