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Number of workers Output per day 0 92 176 252 320 380 432 476 512 540 10 560 Compute the schedules for the firm’s marginal product and marginal revenue product curves, assuming the price of the good the firm produces is $1 and that the firm operates in a perfectly competitive product market Add the marginal revenue product curve from Problem to your graph in Problem 2, and determine the number of workers the firm will employ and the wage it will pay Now suppose the firm is required to pay a minimum wage of $48 per day Show what will happen to the quantity of labor the firm will hire and the wage it will pay Suppose that the market for cranberries is perfectly competitive and that the price is $4 per pound Suppose that an increase in Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 778

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