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Question: Kaiser's Ice Cream Parlour hires workers to produce milk shakes. The market for milk shakes is perfectly competitive, and the price of a milk shake is $4. The labour market is competitive, and the wage rate is $40 a day. The table shows the workers' total product schedule.
Number of Quantity produced workers (milk shakes per day)
1 7
2 21
3 33
4 43
5 51
6 55
Kaiser's installs a new machine for making milk shakes that increases the productivity of workers by 50 percent. If the price of a milk shake remains at $4 and the wage rises to $48 a day, how many workers does Kaiser's hire?
The question is relates to Economics, mainly macroeconomics and the question is clarify about conducive business environment, mainly for small businesses in the USA and Brazil.
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