[SOLVED] Week 7 MicroEconomics (WOODEN)

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Microeconomics Week #7 Assignment

Labor and Wages

The following chart provides information on
a firm that hires labor competitively and sells
its product in a competitive market.

Units of Labor	Total Output	Product Price
1	14	$5
2	26	$5
3	37	$5
4	46	$5
5	53	$5
6	58	$5

a.How many units of labor would be employed if the market wage rate were $40? Why?

b.What would happen to employment if the wage rate rose to $50? Explain your answer.

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[SOLVED] Week 7 MicroEconomics (WOODEN)

Labor and Wages

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