Suppose that labor costs w100 per day and that at the


Suppose that labor costs w=$100 per day and that at the current level of employment the marginal product of labor is 20. What does marginal cost equal? Show/explain. Interpret the value you obtained for marginal cost. If, at the current employment level, labor is subject to diminishing marginal returns, what happens to the value of marginal cost that you calculated if the firm expands the employment level? Explain.

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Business Economics: Suppose that labor costs w100 per day and that at the
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