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Category > Business & Finance Posted 15 May 2017 My Price 5.00

A new coffee shop opens and to maximize profit it hires 5 workers

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 $4 and the value of marginal product of workers in the coffee shop is $12 an hour.

 

If the price of a cup of coffee rises from $4 to $5 and the coffee shop continues to hire workers at the competitive wage rate, explain how the value of marginal product and the number of workers hired will change.

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Alpha Geek
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Status NEW Posted 15 May 2017 12:05 PM My Price 5.00

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