Ki Y.

asked • 06/16/21

1.Suppose a firm’s hourly marginal product of labor is given by MPN = A (200 – N)

1. Suppose a firm’s hourly marginal product of labor is given by MPN = A (200 – N)


a) If A = 0.2 and the real wage rate is $10 per hour, how much labor will the firm want to hire?

b) Suppose the real wage rate rises to $20 per hour. How much labor will the firm want to hire?

c) With the real wage rate at $10 per hour, how much labor will the firm want to hire if A rises to 0.5?



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