Factor Markets and the Distribution of Income
Patty’s Pizza Parlor initially had the production function given in the table in Problem 3. A worker’s hourly wage rate was $10, and pizza sold for $2. Now Patty buys a new high-tech pizza oven that allows her workers to become twice as produc-tive as before. That is, the first worker now produces 18 pizzas per hour instead of 9, and so on. a. ................
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