Diane's Auto World Installs Tires on Automobiles, Light Trucks, and Sport

question 23

Multiple Choice

Diane's Auto World installs tires on automobiles, light trucks, and sport utility vehicles. She is a profit-maximizing business owner whose firm operates in a competitive market. The marginal cost of installing a tire is $10. The marginal productivity of the last worker that Diane hired was 2 tires per hour. What is the maximum hourly wage that Diane was willing to pay the last worker hired?

• A) $5
• B) $10
• C) $20
• D) There is insufficient information to answer this question.

---

Definitions:

Democratic Leadership Style

A leadership approach that involves the equal participation of all members in decision-making processes.

Group Discussion

A method of bringing a group of individuals together to explore a subject or solve a problem communally.

Leadership

An individual’s ability to motivate and influence others to contribute to their group’s success.

Social Relationships

Connections between individuals in a society, which can provide emotional support, friendship, and a source of social integration.