The marginal product of labor (measured in units of output) for Expando Corp is given by MPN = A(400 - N)
where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $3 per unit and A = 2.0. What will be the demand for labor if the nominal wage is $18?
A) 57
B) 107
C) 197
D) 397
D
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Indicate whether the statement is true or false
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