A bakery operating in competitive markets sells its output for $20 per cake and hires labour at
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A bakery operating in competitive markets sells its output for $20 per cake and hires labour at
$10 per hour. To maximise profits, it should hire labour until the marginal product of labour is a 1/2 cake per hour.
b 2 cakes per hour.
c 10 cakes per hour.
d 15 cakes per hour.
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