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How do I find the accurate Q valu Suppose, due to a technological innovation, the marginal product of each worker rises by four. At the
How do I find the accurate Q valu
Suppose, due to a technological innovation, the marginal product of each worker rises by four. At the same time, due to tight labor markets, the wages that you must pay rise to $100 per day. Additionally, preferences for your product rise and thus prices rise to $4.00. Given these new conditions, on a piece of scrap paper, fill in a table like the following. The current wage is $100 and the price of output (Q is equal to $4.00 NOTE: You will not need to submit this table, but it will help you answer the following THREE questions. Exam 1 Table 2 Marginal Profit Total Profit 1. How many workers will you hire to maximize profits? 2. What are the maximum profits? 3. How much output is produced at profit maximization?
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