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   Suppose we have a competitive labor market. What is the marginal benefit to the firm...

  1.    Suppose we have a competitive labor market.
    1. What is the marginal benefit to the firm of hiring another worker? Explain why.
    2. What is the marginal cost to the firm of hiring another worker?
    3. How does the firm decide how many workers to hire in the short run?
    4. In the long run, capital is no longer fixed Explain how this changes the labor decision for the firm.
    5. What is the main difference between labor demand in the short run and labor demand in the long run? Why?

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Expert Solution


Rahul Sunny answered 1 year ago
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