If Another Worker Is Hired with a Marginal Product Greater

question 272

Multiple Choice

If another worker is hired with a marginal product greater than the previously hired worker,which of the following will be true?

• A) total costs will decrease
• B) fixed costs will decrease
• C) marginal cost will increase
• D) marginal cost will decrease
• E) average fixed costs will increase

---

Definitions:

Point Estimate

A single value estimate that serves as the best guess or most likely value for a population parameter based on sample data.

Population Parameter

A numerical value that characterizes a certain aspect of a population, such as its mean or standard deviation.

Measurement Error

The difference between a measured value and the true value, often arising from limitations in measurement tools or techniques.