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Scenario: a Car Repair Shop Hires Workers and Pays Them

Question 88

Multiple Choice

Scenario: A car repair shop hires workers and pays them the federal minimum wage of $7.25. The following table shows the marginal returns to each worker in terms of number of cars repaired.
Scenario: A car repair shop hires workers and pays them the federal minimum wage of $7.25. The following table shows the marginal returns to each worker in terms of number of cars repaired.    -Refer to the scenario above.Which statement is true? A)  When this firm hires its third worker, the new worker will add 8 more repaired cars to the firm's output. B)  When this firm hires its third worker, the total number of repaired cars in this shop will be 8. C)  When this firm hires its third worker, the new worker will add 1 less repaired car to the firm's output. D)  When this firm hires its third worker, the new worker will add 1 more repaired car to the firm's output.
-Refer to the scenario above.Which statement is true?


A) When this firm hires its third worker, the new worker will add 8 more repaired cars to the firm's output.
B) When this firm hires its third worker, the total number of repaired cars in this shop will be 8.
C) When this firm hires its third worker, the new worker will add 1 less repaired car to the firm's output.
D) When this firm hires its third worker, the new worker will add 1 more repaired car to the firm's output.

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