The Marginal Product of a New Worker Is 80 Units

question 18

Multiple Choice

The marginal product of a new worker is 80 units and the marginal expense of a new worker is $800.The marginal product of hiring current workers another hour is 10 units and the marginal expense of hiring current workers another hour is $12.If the firm needs extra hours of work (assuming the work could be done by either the new or current workers) ,it should

• A) hire new workers.
• B) hire current workers more hours.
• C) be indifferent between hiring new workers or hiring current workers more hours.
• D) not hire anyone for the added hours of work.

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Definitions:

Spatial Openness

Involves the physical and psychological aspects of spaces that encourage visibility, accessibility, and the free flow of ideas and movement.

Direct Social Contact

Direct social contact refers to face-to-face interactions between individuals, facilitating communication and understanding.

Groupthink

A behavioral pattern observed in groups where the need for consensus or compliance leads to unwise or ineffective decision-making results.

Lack Of Teamwork

The absence or deficiency of collaboration and cooperative effort among a group working towards common goals.