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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
Shifting the PPF Curve To raise the manufacturing of one good without reducing the production of the other, the PPF curve should shift outward. The PPF curve shifts outward as
1. Let's get some practice plotting budget constraints. On the graph below, plot the budget constraints when: a. (Use Black): P x = 57,P y = 18, and M = 342. b. (Use Blue):
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