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Wally's Widgets Currently Hires 8 Workers

Question 60

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Wally's Widgets currently hires 8 workers. The average product of labor is 15 widgets per day, and the marginal product of a 9th worker is expected to be 13 widgets per day. If the firm hires the 9th worker, what will happen to the average product of labor? Explain.

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If the firm hires the 9th work...

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