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(Table: Value of the Marginal Product of Labor and Demand) Use Table: Value of the Marginal Product of Labor and Demand.In the table,the total product of labor is shown for the hourly production of power cords.Assume that the market for power cords is perfectly competitive.The price of a power cord is $2,the market wage rate is $20 per hour,and 8 workers are hired.Profit can be maximized by hiring _____ worker(s) .
A) 1 more
B) 2 more
C) 1 fewer
D) 2 fewer
Perfectly Competitive
A market structure where many firms sell identical products, no barriers to entry exist, and no single buyer or seller can affect the market price.
Market Wage Rate
The prevailing wage determined by the supply and demand for labor in the market, varying across different skill levels, industries, and regions.
Power Cords
Electrical cables specifically designed to connect an appliance or device to the main electricity supply.
- Assess the implications of productivity shifts on job markets and earnings.
- Understand the profit-maximizing condition for firms in relation to labor demand.
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Learning Objectives
- Assess the implications of productivity shifts on job markets and earnings.
- Understand the profit-maximizing condition for firms in relation to labor demand.
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