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Unformatted text preview: Question Two The marginal product of labour (measured in units of output) for a certain firm is: MPN = A(100 - N) Where A measures productivity and N is the number of labour hours used in production. The price of output is $2 per unit. EC 202(01) Assignment # 2 S10 a) If A = 1.0, what will be the demand for labour if the nominal wage rate is: i) $10? ii) $20 Graph the demand curve for labour. What is the equilibrium real wage rate if the supply of labour is fixed at 95? b) Repeat part (a) for A = 2.0....
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- Spring '10