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solve problem 5 and 6 Problem 5 The Marginal Benefit of hiring workers for a firm is given by: MB -10,000 - X. The Marginal

solve problem 5 and 6

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Problem 5 The Marginal Benefit of hiring workers for a firm is given by: MB -10,000 - X. The Marginal Cost to the firm of hiring workers is given by: MC = 1,000 + X". a. Please calculate the optimal amount of workers that the organization should hire. b. Draw a diagram of the solution. c. Briefly explain the slopes of the Marginal Benefit and Marginal Cost Curves. Why does it cost more to hire each additional worker? Why the benefit of each additional worker decreases? d. If the wage of the workers increase what will the firm do? Illustrate the solution. Problem 6 Assume that a CONSUMER FACES Prices of $40 and $20 FOR GOOD X and GOOD Y, and the consumer has a Utility function given by U(X, Y) = xy. a) How much income (M) he/she should receive to obtain Utility of 100 units. b) Illustrate solution

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