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Illustrate and explain how a firm's short-run demand for labor curve is derived. Also, show and explain that a firm will stop producing in the
Illustrate and explain how a firm's short-run demand for labor curve is derived. Also, show and explain that a firm will stop producing in the short-run if the wage rate (w) exceeds the VAP at it's maximum. (hint: a firms will produce in the short-run as long as TR TVC). Another hint: You need to show that TR = VAP x E.
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