Multiple Choice
The marginal product of a new worker is 80 units and the marginal expense of a new worker is $800.The marginal product of hiring current workers another hour is 10 units and the marginal expense of hiring current workers another hour is $12.If the firm needs extra hours of work (assuming the work could be done by either the new or current workers) ,it should
A) hire new workers.
B) hire current workers more hours.
C) be indifferent between hiring new workers or hiring current workers more hours.
D) not hire anyone for the added hours of work.
Correct Answer:

Verified
Correct Answer:
Verified
Q13: An increase in quasi-fixed costs would probably
Q14: If a worker incurs the entire cost
Q15: A firm employs M workers per week
Q16: Policies that protect workers against "unjust dismissal"
Q17: Suppose that a monopsonist employs 100 workers
Q19: Which of the following is definitely NOT
Q20: If workers share in the cost of
Q21: Approximately what percentage of male skilled craft
Q22: Workers that are least susceptible to layoffs
Q23: When a firm hires a fourth worker,its