The Chart Below Describes the Short Run Productivity of Workers

question 113

Multiple Choice

The chart below describes the short run productivity of workers at Paper Pushers Inc. ,an office support firm that has no variable costs other than labor. $\begin{array}{|l|l|}\hline \text { Workers } & \text { Pages per Hour } \\\hline 1 & 40 \\\hline 2 & 75 \\\hline 3 & 105 \\\hline 4 & 125 \\\hline 5 & 140 \\\hline 6 & 150 \\\hline 7 & 155 \\\hline\end{array}$
If the workers are producing a product that sells for $2.00 per page this firm will

• A) hire all seven workers if wages are $20.
• B) hire all seven workers if wages are $10.
• C) hire all seven workers only if wages are $5 or less.
• D) always hire the seventh worker.

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Definitions:

Perfect Tender Rule

A legal principle stating that a seller must deliver goods in accordance with the contract terms in every detail for the buyer to accept them.

Material Requirements

Specific essential resources or inputs needed for a project, production, or manufacturing process.

Unconscionability

Refers to a situation where a contract is so unfairly one-sided that it shocks the conscience, often due to undue influence, duress, or gross inequality in bargaining power.

Enforceable Offer

A proposal made in a contract that is legally binding and can be enforced in a court of law, provided it meets all the required conditions.