You are considering hiring an employee whose marginal revenue product will be $17 per hour, and the market wage for such workers is $15 per hour. You should Select one: a. hire the worker, but agree to pay her $19 per hour. b. not hire the worker since the marginal revenue product is too high. c.not hire the worker because the gap between marginal revenue product and the wage is not large enough. d.hire the worker at the market wage.

Given information: The marginal revenue of the product is 17. The market wage is 15.

Answered: ou are considering hiring an employee…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Labor Markets And Income Distribution

Section: Chapter Questions

Problem 2SQP

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You are considering hiring an employee whose marginal revenue product will be $17 per hour, and the market wage for such workers is $15 per hour. You should

Select one:

hire the worker, but agree to pay her $19 per hour.

not hire the worker since the marginal revenue product is too high.

not hire the worker because the gap between marginal revenue product and the wage is not large enough.

hire the worker at the market wage.

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