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The production function for Eid Industries is described by employment and output data: Workers Hired Out put Produced _I_ (a) Calculate the Marginal Product of
The production function for Eid Industries is described by employment and output data: Workers Hired Out put Produced _I_ (a) Calculate the Marginal Product of Labour at each employment level. (3 points) (b) Ifthis good sells for $5/unit, how many workers are hired if the money wage is: (1) $38 (2 points) (i) $27 (2 points) (iii) $22 (2 points) (c) Ifthe money wage is $38, and the price of each unit doubles from to $10, what happens to labour demand and the output level? (3 points)
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