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Labor Output Price (D 1 ) Price (D 2 ) 0 0 $10.00 $10.00 1 16 10.00 9.50 2 31 10.00 9.00 3 45 10.00
Labor | Output | Price (D1) | Price (D2) |
0 | 0 | $10.00 | $10.00 |
1 | 16 | 10.00 | 9.50 |
2 | 31 | 10.00 | 9.00 |
3 | 45 | 10.00 | 8.50 |
4 | 58 | 10.00 | 7.50 |
5 | 69 | 10.00 | 6.50 |
6 | 78 | 10.00 | 5.50 |
Assume that the labor market is perfectly competitive. Supposethe firm’s product demand is given by the column labeledD1. If the wage rate is $125, the firm will achievemaximum profit by hiring _____ workers.
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