Mary Is Considering Hiring Another Worker in an Assembly Line

question 301

Multiple Choice

Mary is considering hiring another worker in an assembly line for MP3 speakers. Mary knows the average product of labor is 15 speakers per day. She also believes that the next worker hired will produce an extra 12 speakers per day. A speaker sells for $10. Assuming that the market for speakers is perfectly competitive, Mary should hire another worker:

• A) only if the new worker's marginal product is 12 or more.
• B) only if the new worker's daily wage is $150 or less.
• C) only if the new worker's daily wage is $120 or less.
• D) since the marginal product is below the average product.

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Definitions:

Distribution-Free Tests

Statistical tests that do not assume a specific distribution shape for the population from which the sample is drawn, also known as non-parametric tests.

Sampled Populations

Sampled populations refer to the complete set of individuals or objects from which a sample is drawn for the purpose of research or statistical analysis.

Parametric Tests

Tests that make assumptions about the parameters of the population distribution from which the sample is drawn.

Population Locations

The geographical sites or areas where members of a specific population can be found.