Mary Is Considering Hiring Another Worker in an Assembly Line

question 301

Multiple Choice

Mary is considering hiring another worker in an assembly line for MP3 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. Assuming that the market for speakers is perfectly competitive, 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:

Defence Mechanism

Mental tactics employed by people to deal with the real world and preserve their sense of self.

Overcompensation

A defense mechanism where individuals attempt to cover up feelings of inferiority by exaggerating desirable traits or behaviors.

Gruelling Workout

A physically and mentally demanding exercise routine that pushes individuals to their limits of endurance and strength.

Type A Personalities

Individuals with a personality characterized by competitiveness, urgency, aggression, and a high level of stress.