5 Suppose that a worker is expected to stay with a firm for two years. The workers...

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5 Suppose that a worker is expected to stay with a firm for two years. The worker’s value of marginal product is $20,000 in the first year, rising to

$25,000 in the second year owing to experience gained in the job. Suppose that the interest rate is 10 percent and the worker is paid $18,000 in her first year at the job.

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Managerial Economics

ISBN: 9780415272889

1st Edition

Authors: Tim Fisher , Robert Waschik

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