SQ5_LaborMarkets

If socks sell for 6 a pair and the competitive market

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Unformatted text preview: market to sew socks. The fabric required to make each pair of socks costs $1. The company’s hourly output of socks varies with the number of workers hired, as shown below: Number of Number of Pairs Workers of Socks 0 0 1 20 2 35 3 45 4 50 5 53 6 55 a. If socks sell for $6 a pair, and the competitive market wage is $15 per hour, how many workers should Susie hire? b. If the price of socks falls to $5 a pair and the competitive market wage is $15, how many workers will S...
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