Suppose that for the firm in Problem 29-9, the goods market is perfectly competitive. The market price of the product the firm produces is $4 at each quantity supplied by the firm. What is the amount of labor that this profit-maximizing firm will hire, and what wage rate will it pay?
Problem 29-9
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is depicted in the following table:

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Total Physical Product Hourly Wage Rate ($) Labor Supplied 10 12 13 14 15 100 109 116 121 124 125 es 8 10