The Marginal Product of a New Worker Is 80 Units

question 18

Multiple Choice

The marginal product of a new worker is 80 units and the marginal expense of a new worker is $800.The marginal product of hiring current workers another hour is 10 units and the marginal expense of hiring current workers another hour is $12.If the firm needs extra hours of work (assuming the work could be done by either the new or current workers) ,it should

• A) hire new workers.
• B) hire current workers more hours.
• C) be indifferent between hiring new workers or hiring current workers more hours.
• D) not hire anyone for the added hours of work.

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Definitions:

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Sense Receptors

Cells or organs that receive stimuli from the external or internal environment and convert them into neural signals for interpretation by the brain.

Non-conscious Processing

Mental processes that occur without conscious awareness, influencing perceptions, thoughts, and behaviors.