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Answer questions 15 to 17 on the basis of the attached marginal revenue product diagram. This diagram shows the marginal revenue product (MRP) of workers
Answer questions 15 to 17 on the basis of the attached marginal revenue product diagram. This diagram shows the marginal revenue product (MRP) of workers per hour at Sam's Sawmill, a competitive lumber firm that hires workers from a competitive market,
How many workers will Sam's Sawmill hire when the wage rate is $15 per hour?
Suppose that Sam's Sawmill uses a new technology that increases the productivity of its lumber workers. How will the new technology affect the quantity of workers the Sawmill is willing to hire?
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