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Profit maximization

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8. Problem-solving question: Use the following data for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers the firm will employ to maximize profits.

a) Number of Workers (L) MRPL MRCL
0 0 0
1 $40 $20
2 70 20
3 40 20
4 30 20
5 20 20
6 10 20
7 5 20

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Profit maximization is examined.

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