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Imagine a small producer of tortillas and assume that she is operating in a competitive labor market and a competitive output market. We know that

Imagine a small producer of tortillas and assume that she is operating in a competitive labor market and a competitive output market. We know that ten workers can manufacture 500 tortilla packages in a day and that eleven workers can manufacture 550 tortilla packages per day. If the tortilla packages can be sold for $4 each, what is the maximum wage/day that the employer would pay the eleventh worker?

$2200

$200

$400

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