When Firm a Hires One Worker It Pays $10 an Hour

Multiple Choice

When firm A hires one worker it pays $10 an hour and its total labor cost is $10. When it hires a second worker, it has to pay $11 to each of its two workers and its total labor cost is $22. When it hires a third worker, it has to pay $12 to each of its three workers and its total labor cost is $36. For firm A,

A) its marginal factor cost is greater than the wage rate it pays, except for the first worker it hires.
B) its marginal factor cost is greater than the wage rate it pays, except for the first two workers it hires.
C) its supply curve of labor lies above its marginal factor cost curve.
D) it is likely that marginal revenue product is always greater than marginal factor cost.
E) none of the above