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Assume that the firms in the United States set their price as a markup on their wage cost. Assume every firm is identical in the United States, and that they set a wage equal to $22. Recall that the number of employed workers in the United States is 153.5 million. Q 6. Draw the average product of labor on the graph. This value will vary based on how you draw your own graph, but it needs to make sense given the wage. Is the average product of labor greater than, equal to, or less than the wage?

Assume that the firms in the United States set their price as a markup on their wage cost. Assume every firm is identical in the United States, and that they set a wage equal to $22. Recall that the number of employed workers in the United States is 153.5 million. Q 6. Draw the average product of labor on the graph. This value will vary based on how you draw your own graph, but it needs to make sense given the wage. Is the average product of labor greater than, equal to, or less than the wage?

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 13P
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Assume that the firms in the United States set their price as a markup on their wage cost. Assume every firm is identical in the United States, and that they set a wage equal to $22. Recall that the number of employed workers in the United States is 153.5 million. Q 6. Draw the average product of labor on the graph. This value will vary based on how you draw your own graph, but it needs to make sense given the wage. Is the average product of labor greater than, equal to, or less than the wage?
Transcribed Image Text:Assume that the firms in the United States set their price as a markup on their wage cost. Assume every firm is identical in the United States, and that they set a wage equal to $22. Recall that the number of employed workers in the United States is 153.5 million. Q 6. Draw the average product of labor on the graph. This value will vary based on how you draw your own graph, but it needs to make sense given the wage. Is the average product of labor greater than, equal to, or less than the wage?
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