Josh Was Trying to Decide Which of Two People to Hire

question 64

Multiple Choice

Josh was trying to decide which of two people to hire for a job. Donna told him a story about her parents deciding to get two cats when they could not decide which one to buy. Josh recognized that hiring both people would solve his problem. Josh has:

• A) restructured his problem
• B) worked backward from an end state
• C) used an appropriate analogy
• D) overcome a mental set

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Definitions:

Profit-maximizing Equilibrium

A state in which a firm achieves the highest possible profit, given its production costs and market conditions.

Appliance Manufacturer

A company that produces electrical machines and devices for domestic use.

Variable Resources

Inputs or factors of production that can be adjusted in the short term to meet changes in the level of output, such as labor and raw materials.

MRPs

Marginal revenue products, a measure of the additional revenue generated by employing an additional unit of a resource or factor of production.