Use the following information to answer the next 3 The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and the market price is $2 per unit. Units of Labor 3 456 7 Units of Output 370 490 570 600 620 How much does the fifth unit of labor add to the firm's total revenue? If the wage rate is $200, how many units of labor will the firm employ? If the wage rate is $200, the firm should

Exploring Economics
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Author:Robert L. Sexton
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Chapter16: The Markets For Labor, Capital, And Land
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Use the following information to answer the next 3
The table below shows a competitive firm's short-run production
function. Labor is the firm's only variable input, and the market price is
$2 per unit.
Units of Labor
3
456
7
Units of Output
370
490
570
600
620
How much does the fifth unit of labor add to the firm's total revenue?
If the wage rate is $200, how many units of labor will the firm employ?
If the wage rate is $200, the firm should
Transcribed Image Text:Use the following information to answer the next 3 The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and the market price is $2 per unit. Units of Labor 3 456 7 Units of Output 370 490 570 600 620 How much does the fifth unit of labor add to the firm's total revenue? If the wage rate is $200, how many units of labor will the firm employ? If the wage rate is $200, the firm should
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