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 7. Based on your average product of labor what is the profit per worker? Show this on the graph. What is the profit in the whole economy?

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
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value of average product of labor be 25 dollars.

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 7. Based on your average product of labor what is the profit per worker? Show this
on the graph.
What is the profit in the whole economy?
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 7. Based on your average product of labor what is the profit per worker? Show this on the graph. What is the profit in the whole economy?
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