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Unformatted text preview: are characterized by perfect competition where price=marginal cost and firms earn zero economic profits. PW = 60 w + 40r PC = 75w + 25r a. If initial PW=100 and initial PC=100 what are the values of the wage rate (w) and the rental rate (r)? What is the labor cost per unit of wheat output? What...
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This note was uploaded on 10/06/2013 for the course EC 161 taught by Professor Fusillo during the Fall '12 term at Tufts.
- Fall '12