Jennifer Is the Only Employee of Her Sole Proprietorship

question 116

Multiple Choice

Jennifer is the only employee of her sole proprietorship. She is entertaining the idea of hiring an additional employee. She knows that on her own she can produce 100 units per day. Jennifer figures that Applicant A will help her produce 175 units per day whereas Applicant B will help her produce 155 units per day. Which of the following statements is MOST accurate?

• A)Applicant B has a marginal product of 75 units.
• B)Applicant B has an average product of 77.5 units.
• C)Applicant A has a marginal product of 75 units.
• D)Applicant A has an average product of 87.5 units.

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Definitions:

Productive Skills

The abilities and expertise that enable an individual to produce goods or deliver services effectively in a work setting.

Green Card

A document granting an individual the right to live and work permanently in the United States.

Financial Expenditures

Outflows of cash or other assets from a firm or individual for the purpose of acquiring an asset or servicing a debt.

Home Country

Refers to the country where a corporation's headquarters are located and operates from.