2.back to Barry's ice making plant described in problem 1, the price of party ice falls to 25¢ a bag but bagger's wages remain at $10.00 an hour. a. What happens to Barry's marginal product? b. What happens to his value of marginal product? c. What happens to his demand for labour curve? d. What happens to the number of baggers that he employs?
2.back to Barry's ice making plant described in problem 1, the
a. What happens to Barry's marginal product?
b. What happens to his value of marginal product?
c. What happens to his
d. What happens to the number of baggers that he employs?
3. Back at Barry's party ice shop described in problem, 1, bagger's wages increase to $20 an hour, but the price of ice remains at 50¢ a bag.
a. What happens to his value of marginal product?
b. What happens to Barry/s demand for labour curve?
c. How many baggers does Barry employ?
4. What is discounting? What is present value? How do the two relate?
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