If an additional worker costs you Rs. 15 per hour, and that person can add 25 units of output to the firm, you should hire that person as long as
A)25 remains above rs.15
B)25/rs.15 is greater than zero
C)rs.15/25 is great than zero
D)the value of the marginal product is above rs.15 .............

Question

Quizplus · Accepted Answer

The correct answer is D because it directly relates the value of the additional output (marginal product) the worker can produce to the cost of hiring them. If the value of the output they can add (marginal product) is greater than the cost of hiring them (Rs. 15), then it is economically beneficial to hire the additional worker.

If an Additional Worker Costs You Rs