2.3 [related to the Economics in Practice on p. 184] Identical sweaters can be made in one...

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2.3 [related to the Economics in Practice on p. 184]

Identical sweaters can be made in one of two ways.

With a machine that can be rented for $50 per hour and a person to run the machine who can be hired at

$25 per hour, five sweaters can be produced in an hour using $10 worth of wool. Alternatively, I can run the machine with a less-skilled worker, producing only four sweaters in an hour with the same $10 worth of wool.

(The less-skilled worker is slower and wastes material.) At what wage rate would I choose the less-skilled worker?

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Principles Of Microeconomics

ISBN: 9789813107342

12th Global Edition

Authors: Karl E. Case, Sharon E. Oster, Ray C. Fair

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