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A service firm pays its workers $10 per hour, which is the going wage rate in a competitive labor market. The firm sells its service
A service firm pays its workers $10 per hour, which is the going wage rate in a competitive labor market. The firm sells its service for $75 per unit and has all the raw materials and has plenty of capacity to produce its service, in terms of machines and other equipment. It will take a worker 8 hours to produce an additional unit of service. Should the firm hire another worker
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