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6. Quasi—fixed costs such as training costs, hiring costs, and employee benefits are among the sources of
employer—side frictions in the labor market which can make the cost of hiring an additional worker
higher than the cost of hours of labor. Assuming diminishing marginal product of additional workers
and diminishing marginal product of additional hours—per-worker, how would a. profit—maximizing firm
adjust its mix of workers and hours—per—worker in response to: (a) A new user—friendly computer system that reduces training time required by one—half?
(b) New legislation requiring workers be paid 50 percent extra per hour worked (i.e., time and one-half) on weekends and after 5 p.m. during the week?

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