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You were recently hired to replace the manager of the Roller Division at a major conveyor-manufacturing firm in Philadelphia, despite the manager's strong external sales

You were recently hired to replace the manager of the Roller Division at a major conveyor-manufacturing firm in Philadelphia, despite the manager's strong external sales record. Roller manufacturing is relatively simple, requiring only labor and machine that cuts and crimps rollers. As you begin reviewing the company's production information under the previous manager, you learn that labor is paid $12 per hour and the last worker hired produced 80 rollers per hour. The company rents roller cutters and crimping machines for $15 per hour, and the marginal product of capital is 110 rollers per hour. What do you think the previous manager could have done to keep his job? Use the information given to provide a complete economic analysis.

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