Suppose marginal productivity tripled while product price fell by half in Table 5.2. What would be the

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Suppose marginal productivity tripled while product price fell by half in Table 5.2. What would be the net impact on the location of the short-run labor demand curve in Figure 5.2?

Figure 5.2

$30 ($23.99) 24 18 12 MRP = D, = VMP %3D 4 Quantity of labor Wage rate

Table 5.2

(4) Product Price, P (5) Total Revenue, TR (7) (1) Units of (2) (6) MRP (3) MP VMP Labor, L (ATR/AL) (MP x P) TP 4 15 $2

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Contemporary Labor Economics

ISBN: 978-1259290602

11th Edition

Authors: Campbell R. McConnell, Stanley L. Brue, David Macpherson

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Question Posted: Nov 19, 2018 07:42 AM

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Suppose marginal productivity tripled while product price fell by half in Table 5.2. What would be the

Question:

$30 ($23.99) 24 18 12 MRP = D, = VMP %3D 4 Quantity of labor Wage rate (4) Product Price, P (5) Total Revenue, TR (7) (1) Units of (2) (6) MRP (3) MP VMP Labor, L (ATR/AL) (MP x P) TP 4 15 $2 $30 5 $24 $24 27 36 12 54 72 18 18 42 84 12 12 8. 45 3 90 9. 46 2 92

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