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Analyzing Labor Productivity at a Firm
A core simplifying assumption in some economic models is that the output per worker remains the same regardless of the total number of workers employed. Analyze the following scenario in the context of this assumption. Does the company's experience support or contradict this assumption? Justify your answer with calculations.
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A manufacturing firm's production model is built on the core assumption that each worker produces a fixed number of units per hour, and this individual output level does not change regardless of the total number of employees. If this firm currently has 100 employees and decides to hire 20 more, what would be the direct consequence for the firm's total output according to this specific assumption?
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