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Using the Wage Rate and Output per Hour as indicated on the table below, calculate the output per dollar wage and unit labor cost. Then decide on the optimal wage rate for this company beyond which it is no longer profitable for the firm to pay its workers. Illustrate your analysis on a graph for both output per dollar wage and unit labor cost.
Wage Rate
Output per Hour
10
33
20
68
30
106
40
151
50
183
60
211
functions of taxes
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