Q 41

The marginal product of labor (measured in units of output)of a firm is given by MPN = A(2000 - N) where A measures productivity and N is the number of labor hours used in production.Suppose the price of output is $6 per unit and A = 0.002. (a)What will be the demand for labor if the nominal wage is $18? (b)What will be the demand for labor if the nominal wage rises to $21?

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