Multiple Choice
The marginal product of an additional unit of labor is 100 units per day and the market price of this output is $0.75 per unit.
-If the cost to the firm of hiring this unit of labor (wages,Social Security,and other payroll taxes) is $12 per hour for an eight-hour day,a profit-maximizing firm
A) should hire the additional unit of labor.
B) should not hire this extra unit.
C) should hire this person for half a day.
D) should hire this extra unit of labor plus one more.
E) There is not enough information available to determine the optimal number of workers.
Correct Answer:

Verified
Correct Answer:
Verified
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