Question
The marginal product of labor (measured in units of production) for Rotona Corp. is given by MPN = A(200 - N) where A measures productivity
The marginal product of labor (measured in units of production) for Rotona Corp. is given by MPN = A(200 - N)
where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $3 per unit and A = 2.0.
a) What will be the demand for labor if the nominal wage is $30?
B) With the above condition, what will be the demand for labor if the government imposes a 20% sales tax on the company, assuming that the tax is not passed on to consumers?
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To determine the demand for labor we need to find the level of labor input that maximizes the firms ...
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
