Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 21, Problem 8MC
To determine
Screening process.
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A firm is thinking of hiring an additional worker to their organization who can increase total productivity by 100 units a week. The cost of hiring him is $1,500 per week. If the price of each unit is $12, which of the following is correct?
Group of answer choices
the MR of hiring the worker is $1,500.
The MC of hiring the worker is $1,200.
The worker should be hired at that wage because the marginal benefit exceeds the marginal cost.
All of the above are correct.
None of the above is correct.
A decrease in the wage rate will cause a firm’s marginal cost curve to shift down. True or False and explain why. Include graphs when needed.
What is the Marginal Profit of adding a 4th worker?
Group of answer choices:
$300
$700
$500
$900
Chapter 21 Solutions
Managerial Economics: A Problem Solving Approach
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