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nikklg [1K]
3 years ago
5

Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output

and that the price of the output is $4. According to economic theory, in the short run, __________.a. the firm should hire additional workers.
b. the firm should reduce the number of workers employed.
c. the firm should continue to employ 10 workers.
d. more information is required to answer this question.
Business
1 answer:
Arada [10]3 years ago
8 0

Answer:

A) the firm should hire additional workers.

Explanation:

if the marginal production of the tenth worker is 5 units or output and the price of each unit is $4, the the workers total marginal product revenue (MPR) = 5 units x $4 per unit = $20

Since the cost of hiring that tenth worker is $15 (less than MPR), then the company should hire more additional workers until the MRP = labor cost

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3 years ago
Which of the following serves as the justification for the periodic recording of depreciation expense? a. Association of efforts
SIZIF [17.4K]

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"B"

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"A firm finances itself with 30 percent debt, 60 percent common equity, and 10 percent preferred stock. The before-tax cost of d
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Answer:

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The concept of utility is fundamental to utilitarianism and describes the a. optimal distribution of wealth in society. b. level
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