A Firm Currently Has 5 Workers Each Paid $15 Per

question 35

Multiple Choice

A firm currently has 5 workers each paid $15 per hour.If it decides to hire a 6th worker,the hourly wage increases to $18 for all workers.What is the marginal cost of hiring the 6th worker?

• A)$3
• B)$18
• C)$15
• D)$33

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Definitions:

Squares

Geometrical shapes with four equal sides and four right angles, or multiplications of a number by itself.

Mean Squared Error

A measure of the average squared differences between estimated and actual values, used to evaluate the accuracy of statistical models.

Exponential Smoothing

A time series forecasting method for univariate data that applies weighing factors which decrease exponentially over time.

Mean Absolute Deviation

A measure of variability that indicates the average distance between each data point and the mean of the data set.