If Another Worker Is Hired with a Marginal Product Greater

question 233

Multiple Choice

If another worker is hired with a marginal product greater than the previously hired worker,which of the following will be true?

• A)Total costs will decrease.
• B)Fixed costs will decrease.
• C)Marginal cost will increase.
• D)Marginal cost will decrease.
• E)Average fixed costs will increase.

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Definitions:

Price Discrimination

The practice of charging different prices for the same product or service to different consumers, based on what each is willing to pay.

Senior Citizens

Individuals of an advanced age, often defined as being 65 years old or older, who may have different social, economic, and healthcare needs.

Walmart

An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, known for its scale and efficiency in supply chain management.

Price Discrimination

The business strategy of selling the same product to different customers at different prices based on their willingness to pay.