When Firm a Hires One Worker It Pays $8 an Hour

question 65

Multiple Choice

When firm A hires one worker it pays $8 an hour and its total labor cost is $8.When it hires a second worker,it has to pay $8.50 to each of its two workers and its total labor cost is $17.When it hires a third worker,it has to pay $9 to each of its three workers and its total labor cost is $27.For firm A,

• A) its marginal factor cost is above the wage rate it pays, except for the first worker it hires.
• B) its marginal factor cost is above the wage rate it pays, except for the first two workers it hires.
• C) its supply curve of labor lies above its marginal factor cost curve.
• D) it is likely that marginal revenue product always lies above marginal factor cost.
• E) none of the above

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Definitions:

Birthrate

The rate at which births occur in a population, typically expressed as the number of births per 1,000 people per year.

Cultural Competence

The ability to understand, communicate with, and effectively interact with people across cultures.

Racial Bias

The positive or negative prejudices or stereotypes towards individuals or groups based on their race, often unconsciously held.

Cultural Incapacity

A lack of capacity, knowledge, or skills to effectively interact with and respect culturally diverse individuals or groups.