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The table shows a firm's total hourly production for varying numbers of workers. Suppose the rm sells its product in a perfectly competitive market at
The table shows a firm's total hourly production for varying numbers of workers. Suppose the rm sells its product in a perfectly competitive market at a price of $5. Number of Output MP MRP Workers '1) 207 27 $135 2 51 24 $120 21 $105 3 72 18 $90 4 90 15 $75 5 105 Suppose the labour market is perfectly competitive and the equilibrium wage is $105. The firm should hire 3 workers to maximize profits. (Enter your response as a whole number.) Now suppose the equilibrium wage increases to $120. The firm should hire 2 workers to maximize prots. (Enter your response as a whole number.) If the equilibrium wage is $120 and the rm hires 3 workers instead of 2 workers, the firm has given up $- in prots. (Enteryour response rounded to the nearest whole number.)
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