Kelly Is an Architect and She Is Trying to Decide

question 19

Multiple Choice

Kelly is an architect and she is trying to decide whether to hire Mike, a draftsman, to assist with her work. Kelly could hire Mike at $20 per hour but it would take him three times as long to complete a task as it takes Kelly. Kelly is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?

• A) Kelly should not hire Mike because it would be faster for her to do the work herself.
• B) Kelly should do the drafting work herself because she has the lower opportunity cost.
• C) Mike should be hired at the $20 per hour wage rate.
• D) Mike should be hired, but only if he is paid more than $30 per hour.

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Definitions:

Rank

The position or level of importance within a hierarchy or organization.

Market-Entry Strategies

The planned methods of delivering goods or services to a new target market and establishing a presence in that market.

Time Orientation

An individual’s or culture's temporal perspective or attitude towards time, which can significantly influence behavior, priorities, and decision-making.

Legal Challenges

Disputes or obstacles that arise in the enforcement or interpretation of laws.