You Have Been Hired by a Data Processing Firm to Provide

question 118

Multiple Choice

You have been hired by a data processing firm to provide economic advice. The owner of the firm tells you that the firm's only variable input is the number of data-entry operators. The hourly wage for data-entry operators is $15.00. The marginal revenue product curve for data-entry operators reaches its maximum at three workers with a marginal revenue product of $12.00. What advice would you give this firm?

• A) Hire three data-entry operators so as to minimize the amount of money the firm will lose.
• B) Shut down immediately, as the firm is not able to cover all of its variable costs.
• C) Increase the wage rate paid to data-entry operators so that their marginal revenue product will increase.
• D) Produce as much as possible so as to maximize the difference between the wage paid to data-entry operators and their marginal revenue product.

---

Definitions:

Community Property

A legal regime in some jurisdictions under which property acquired during marriage is owned jointly by both spouses, excluding personal gifts and inheritances.

Tenancy In Common

Tenancy in common refers to a form of ownership where two or more individuals share ownership rights of property, with each tenant having an undivided interest in the property.

Escrow Agent

A neutral third party responsible for holding funds or assets until the fulfillment of specific terms or conditions.

Paralegal

A trained professional who assists attorneys in the delivery of legal services, performing tasks such as research, drafting documents, and case preparation.