Assume Xs Earn $3 Less Per Hour Than Ys and a Firm

question 221

Multiple Choice

Assume Xs earn $3 less per hour than Ys and a firm employs 300 workers. There are 8 working hours in the day, 5 working days a week, and 50 working weeks a year. If the firm discriminates and hires only Ys, how much profit will it lose in a year? (Assume Xs have the same work skills as Ys.)

• A) $1,800,000
• B) $36,000
• C) $7,200
• D) $600,000

Recognize the benefits and limitations of formalizing best practices into organizational doctrine for learning and innovation.

Differentiate between exploration and exploitation in organizational innovation.

Understand the importance of empowering individuals at all levels for problem-solving and innovation.

Comprehend the various strategies for translating learning into practice within organizations.

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Definitions:

Savings

The portion of disposable income not spent on consumption of goods and services, often placed in a deposit account.

Disposable Income

Funds apportioned to households for saving and spending after the settlement of income taxes.

Consumption

Domestic consumption of goods and services by households.

Autonomous Consumption

The level of consumption that occurs when income is zero, reflecting the basic level of spending necessary to sustain life.