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Mathematics, 09.04.2020 11:00, brokegirlyy
Suppose that a firm hiring labor in a perfectly competitive factor market increases the quantity of labor from five workers to six workers per day. If the market wage is $100 per day, the marginal factor cost for the sixth worker is $?
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Now suppose that the firm is a monopsony firm. To increase the quantity of labor from five workers to six workers, the market wage increases from $100 to $120 per day. In this case, the marginal factor cost for the sixth worker is $ ?
.
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