Suppose Mongo Runs a Glue Factory in Knuckle,North Dakota

question 23

Multiple Choice

Suppose Mongo runs a glue factory in Knuckle,North Dakota.Mongo wants to fire his cousin Beevo for not working very hard at making glue.If firing Beevo would save Mongo $6.11 per hour in wages and the value of Beevo's marginal product equals $7.29 per hour,to maximize his profit,Mongo should

• A) fire Beevo.
• B) keep Beevo employed.
• C) add another worker, Teevo, Beevo's sister, whose value of the marginal product would be $4.83 per hour and whose wage would be $6.11 per hour.
• D) increase the wage he pays Beevo to $7.29 per hour.
• E) There is not enough information given to determine what Mongo should do.

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Definitions:

Nineteenth-Century

The period from 1801 to 1900, marked by widespread social, political, and industrial change around the world.

Robert Owen

A Welsh textile manufacturer, philanthropist, and social reformer, best known for his efforts to improve working conditions and the creation of utopian socialist communities.

Pragmatic Socialist

A pragmatic socialist is an individual or ideology focused on socialist principles but flexible in methods and strategies to achieve social and economic goals, embracing practical approaches over purely ideological ones.

Industrialist

An individual who owns, operates, or has significant financial interest in industrial enterprises.