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A software company employs 20 developers, each earning $100,000 per year. To attract a 21st developer, the company must increase the annual salary to $102,000 for all developers. The 21st developer is expected to generate $125,000 in additional annual revenue. Based on this information, which of the following is the most economically sound decision for the company?
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.6 The firm and its employees - The Economy 2.0 Microeconomics @ CORE Econ
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A software company employs 20 developers, each earning $100,000 per year. To attract a 21st developer, the company must increase the annual salary to $102,000 for all developers. The 21st developer is expected to generate $125,000 in additional annual revenue. Based on this information, which of the following is the most economically sound decision for the company?
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