Firms want to maximize their profits I think everyone can live with this assumption. Back to the Pizza example Ok let us assume each pizza sells for 20. MPNP is the Marginal Revenue product of labor. MRPN tells us how much additional revenue that one extra worker would bring to the pizza shop if he was hired. Number of WorkersNumber of PizzasMPNMPN P (MRPN)0010200 1108160 2186120 324480 428240 5300063000730 So how many workers is the pizza shop going to hire Let us say that the going nominal wage…
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