Compass Rose Landscaping Operates in a Very Competitive Market

Multiple Choice

Compass Rose Landscaping operates in a very competitive market. It charges $80 per hour and pays the going market wage of $20 per hour to its workers. At its current level of employment, it has 3 workers, with the marginal product of the third worker equal to 5. Compass Rose should:

A) continue to use 3 workers.
B) hire more than 3 workers.
C) hire fewer workers.
D) The question cannot be answered with the information provided.