Multiple Choice
Diane's Auto World installs tires on automobiles, light trucks, and sport utility vehicles. She is a profit-maximizing business owner whose firm operates in a competitive market. The marginal cost of installing a tire is $10. The marginal productivity of the last worker that Diane hired was 2 tires per hour. What is the maximum hourly wage that Diane was willing to pay the last worker hired?
A) $5
B) $10
C) $20
D) There is insufficient information to answer this question.
Correct Answer:
Verified
Correct Answer:
Verified
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