The marginal product of an additional unit of labor is 100 units per day and the market price of this output is $0.75 per unit.
-If the cost to the firm of hiring this unit of labor (wages,Social Security,and other payroll taxes) is $12 per hour for an eight-hour day,a profit-maximizing firm
A) should hire the additional unit of labor.
B) should not hire this extra unit.
C) should hire this person for half a day.
D) should hire this extra unit of labor plus one more.
E) There is not enough information available to determine the optimal number of workers.
Correct Answer:
Verified
Q11: The price of labor services is generally
Q12: The following question are based on the
Q13: The marginal product of labor multiplied by
Q14: Determination of the price of labor under
Q15: The following question are based on the
Q17: Which sequence correctly ranks (from highest to
Q18: The value of the marginal product is
Q19: In a perfectly competitive market,it pays the
Q20: The following question are based on the
Q21: Which of the following is the best
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents