Mary Is Considering Hiring Another Worker in an Assembly Line

question 87

Multiple Choice

Mary is considering hiring another worker in an assembly line for stereo speakers.Mary knows the average product of labor is 15 speakers per day.She also believes that the next worker hired will produce an extra 12 speakers per day.A speaker sells for $10.Mary should hire another worker:

• A)only if the new worker's marginal product is 12 or more.
• B)only if the new worker's daily wage is $150 or less.
• C)only if the new worker's daily wage is $120 or less.
• D)since the marginal product is below the average product.

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Definitions:

Inverse Relationship

A relationship between two variables where an increase in one variable leads to a decrease in the other, and vice versa.

Accepting

In statistical hypothesis testing, referring to the decision not to reject the null hypothesis based on the evidence provided by the test results.

Failing to Reject

In hypothesis testing, it is the scenario where there isn’t enough evidence to reject the null hypothesis.

Null Hypothesis

A statement of no effect or no difference, serving as the default assumption to be tested against experimental evidence.