The firm marginal revenue product of labor

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Assume that the labor supply curve to a firm is the one given in Problem 1 above that is, (E=5W). If the firm’s marginal revenue product of labor (MRPL) 240 – 2E, what is the profit-maximizing level of employment (E* ) and what is the wage level (W * ) the firm would have to pay to obtain E *workers?

Reference no: EM131244581

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