If Another Worker Is Hired with a Marginal Product Greater

question 272

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:

Consideration

Consideration is a legal concept referring to something of value promised, given, or received in return to form the basis of a contract.

Services

Activities performed to meet the needs of customers or clients, often in exchange for payment.

Concurrent Conditions

Conditions in a contract or legal agreement that must be met by both parties at the same time in order for the contract or agreement to become effective or proceed.

Precedent

A model case that a court can follow when facing a similar situation.