You are a manager at a firm like Snap Delivery, a bicycle courier service in New York
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You are a manager at a firm like Snap Delivery, a bicycle courier service in New York City.
You estimate that if you hire 10 couriers, you can deliver 180 packages a day and if you hire 11 couriers, you can deliver 198 packages a day. You also estimate that the price you can charge for the delivery of each package will be $25. What is the marginal product of labor for the 11th courier? What is the effect of the price on the marginal product of labor?
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