Chapter 7 – The Asset Market, Money, and Prices
Number of workers Units of output MPN 0 0 1 160 160 2 280 120 3 360 80 4 424 64 5 472 48 6 512 40 7 544 32 When P = 5 and W = $190, the real wage w = W/P = $190/$5 = 38. When the real wage is 38, the firm will hire 6 workers, because the MPN of the 6th worker = 40 and the MPN of the 7th worker = 32. ................
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