Suppose a Company Sells Its Product for $5

Multiple Choice

Suppose a company sells its product for $5.00. It's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour. The company should hire the additional worker only if the wage rate is

A) $5.00 or less per hour.
B) $1.00 or more per hour.
C) $25.00 or less per hour.
D) none of the above.