The Firm Should Hire Two Workers Because the Second Worker

question 127

Short Answer

The firm should hire two workers because the second worker is the one for whom MRP ($1,200) is greater than the hourly wage ($700). If the firm hired the third worker for $700, he or she would add only $600 in value, which would take away from the firm's profit.

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Definitions:

Progressing Speed

The rate at which something moves forward or develops.

Reflective Turning Point

Event that signals a change in the way a relationship is defined.

Proposes

Suggests something for consideration or action.

Social Penetration Model

A model of the self that reflects both the breadth and depth of information that can potentially be disclosed.