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Lynn Owns Dust Bunnies, a Cleaning Company

Question 282

Multiple Choice

Lynn owns Dust Bunnies, a cleaning company. In one week, she is able to clean 9 houses. If she hires an employee, together they are able to clean 15 houses per week. If Lynn charges $100 to clean a house, and she pays her employee $400 a week, should she hire this employee?


A) Yes, because the value of marginal product of the worker is less than the wage.
B) Yes, because the value of marginal product of the worker is greater than the wage.
C) No, because the value of marginal product of the worker is greater than the wage.
D) No, because the value of marginal product of the worker is less than the wage.

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