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Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $2. According to economic theory, in the short run the firm should reduce the number of workers employed. the firm should continue to employ 10 workers. more information is required to answer this question. the firm should hire additional workers.

Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $2. According to economic theory, in the short run the firm should reduce the number of workers employed. the firm should continue to employ 10 workers. more information is required to answer this question. the firm should hire additional workers.

Survey Of Economics
Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Labor Markets And Income Distribution
Section: Chapter Questions
Problem 3SQP
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Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $2. According to economic theory, in the short run the firm should reduce the number of workers employed. the firm should continue to employ 10 workers. more information is required to answer this question. the firm should hire additional workers.
Transcribed Image Text:Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $2. According to economic theory, in the short run the firm should reduce the number of workers employed. the firm should continue to employ 10 workers. more information is required to answer this question. the firm should hire additional workers.
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