Contractual workers or seasonal workers are favorable to businessmen because they don't have benefits to be complied on by companies compared to permanent workers. They also have the idea that other workers can be employed if the basis is seasonal work.
Answer:
False
Explanation:
Many companies are just trying to get the most money out of the consumer.
Answer:
The correct answer is option B.
Explanation:
A restaurant is hiring labor.
The marginal revenue cost of the last worker is $16.
The marginal revenue product of the last worker is $12.
We see that the marginal revenue cost is higher than the marginal revenue product.
This implies that the cost incurred in hiring the last worker is higher than the marginal contribution from the last worker.
So the restaurant can maximize profit by hiring fewer workers. The profit-maximizing level will be where the marginal revenue cost will be equal to marginal revenue product.