The marginal product of labor for a firm is given by: MPL = 112 - 4H, where H is the number of hours they hire workers to work. For example, the marginal product of the first hour of labor would be 112-4*1, and the marginal product of the second hour of labor would be 112 - 4*2. If the market wage is $16 per hour, how many hours of labor will this firm hire?

Microeconomics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter12: The Supply Of And Demand For Productive Resources
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The marginal product of labor for a firm is given by: MPL = 112 - 4H, where H is the number of
hours they hire workers to work. For example, the marginal product of the first hour of labor would
be 112 - 4*1, and the marginal product of the second hour of labor would be 112 - 4*2.
If the market wage is $16 per hour, how many hours of labor will this firm hire?
Round your final answer to two decimal places.
Transcribed Image Text:The marginal product of labor for a firm is given by: MPL = 112 - 4H, where H is the number of hours they hire workers to work. For example, the marginal product of the first hour of labor would be 112 - 4*1, and the marginal product of the second hour of labor would be 112 - 4*2. If the market wage is $16 per hour, how many hours of labor will this firm hire? Round your final answer to two decimal places.
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