A new coffee shop opens and to maximize profit it hires 5 workers at the competitive wage rate. The price of a cup of coffee is $2 and the value of marginal product of workers in the coffee shop is $8 an hour. If the price of a cup of coffee rises from $2 to $3, the value of marginal product of the last worker hired before the price change and the number of workers hired 000 A. increases; decreases B. decreases; increases C. decreases; decreases OD. does not change; does not change OE. increases; increases ***

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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A new coffee shop opens and to maximize profit it hires 5 workers at the competitive wage rate.
The price of a cup of coffee is $2 and the value of marginal product of workers in the coffee shop is $8 an hour.
If the price of a cup of coffee rises from $2 to $3, the value of marginal product of the last worker hired before the price
change
and the number of workers hired
de in
%
5
A. increases; decreases
B. decreases; increases
C. decreases; decreases
D. does not change; does not change
E. increases; increases
C
6
M
&
7
8
O
1
9
0
Next
TIP
tact U
=
Transcribed Image Text:A new coffee shop opens and to maximize profit it hires 5 workers at the competitive wage rate. The price of a cup of coffee is $2 and the value of marginal product of workers in the coffee shop is $8 an hour. If the price of a cup of coffee rises from $2 to $3, the value of marginal product of the last worker hired before the price change and the number of workers hired de in % 5 A. increases; decreases B. decreases; increases C. decreases; decreases D. does not change; does not change E. increases; increases C 6 M & 7 8 O 1 9 0 Next TIP tact U =
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