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C5answers - 1. A firm that hires workers to maximize...

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1. A firm that hires workers to maximize profits will also maximize labor productivity. Answer: False
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2. If the demand for labor is price inelastic and the minimum wage exceeds the competitive equilibrium wage, an increase in the minimum wage will increase the total wages of employed workers. Answer: True UJ. .. ~A. .~.,.(;1. .2I.4V ~ -.t/\.e.> ~ "u. ,(;.4.4£) ~ .(.A. .. J'\,t. ..{).eo1'1ML tl. ..".,( . .l""'L.cIl. a~ a/t1- ~?'YU/ft. .t./1)'~t.> AO-tV\ '611 0 ~fa L ~ej /' ~ 0/11{« 01- La.bt9 y 41' / / 1 ~ MJ~ ../ / "" 1:::'\.-' 0 e. .&.iI'\a ~ fe'f lafd "r ".. to""' ,.., +~h{ ~6 l' ~rkeJ';j ~ .Q.11,T1zkl1l!t( A.,()OW~ 12M. .Ge. .. "0 ~~ ,~)-o~f .I A/).J,p",,'JI. . J71?\,.~
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Answer: False ~ ~t.(~~~. -dt~~.iIIl ~"1t'14-1\~1 ...I.L.~~ fU"""/l.t1tio .,;;
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4. Ed's bakery can sell as many loaves of bread as it wishes for a price of $2 per loaf. To keep calculations simple, let us assume that Ed's only costs are hired labor. If Ed hires 1 worker, he can produce 200 loaves of bread per day. If Ed hires 2 workers, he can produce 350 loaves of bread per day.
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This note was uploaded on 08/25/2011 for the course ECON 1 taught by Professor Bergstrom during the Spring '07 term at UCSB.

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C5answers - 1. A firm that hires workers to maximize...

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