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A profit-maximizing firm faces the following options for hiring workers:
a) Assume the firm has limited space so that it can only hire one worker. Which type of employee should the firm hire?
b) Assume the firm can rent additional space so that it can employ two employees at a yearly rate of €25,000. Should the firm rent the additional space? If yes, which type of employee should the firm hire?
Relationship between AC, AVC, AFC and MC is elucidated graphically by drawing respective cost curves in Figure below. Behaviour of cost curves is elucidated below. Figure:
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A chemical producer dumps toxic waste into a river. The waste decreases the population of fish, decreasing profits for the local fishing industry by $100,000 per year. The firm cou
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