Suppose a Firm Can Hire 100 Workers at $8

question 62

Multiple Choice

Suppose a firm can hire 100 workers at $8.00 per hour but must pay $8.05 per hour to hire 101 workers. Marginal factor cost (MFC) for the 101st worker is approximately equal to:

• A) $8.00.
• B) $8.05.
• C) $13.05.
• D) $13.00.

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Definitions:

Sampling Error

The difference between a statistic derived from a sample and the corresponding statistic of the entire population, due to chance variation in selecting the sample.

Population

The entire group of individuals or items that a researcher or statistician is interested in studying.

Representative Sample

A fraction of the population that truly represents the attributes of the entire group.

Null Hypothesis

A statement or assumption that there is no relationship or effect in the population from which a sample was drawn, in statistical testing.