A Firm Hires Only 5 Employees Annually but Each for a Compensation

question 16

Multiple Choice

A firm hires only 5 employees annually but each for a compensation of $100,000 a year.Assuming it costs the company $12,000 to recruit one person,what is the company's staffing efficiency ratio?

• A)10.2 percent
• B)1)2 percent
• C)21 percent
• D)12 percent

---

Definitions:

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

The cost of choosing one option over another, typically expressed as the value of the forgone alternative.

Output

The quantity of goods or services produced within a given timeframe.

Thinking At The Margin

The concept involves making decisions based on the additional benefit or cost of the next unit of production or consumption.