Suppose Mongo Runs a Glue Factory in Knuckle,North Dakota

question 23

Multiple Choice

Suppose Mongo runs a glue factory in Knuckle,North Dakota.Mongo wants to fire his cousin Beevo for not working very hard at making glue.If firing Beevo would save Mongo $6.11 per hour in wages and the value of Beevo's marginal product equals $7.29 per hour,to maximize his profit,Mongo should

• A) fire Beevo.
• B) keep Beevo employed.
• C) add another worker, Teevo, Beevo's sister, whose value of the marginal product would be $4.83 per hour and whose wage would be $6.11 per hour.
• D) increase the wage he pays Beevo to $7.29 per hour.
• E) There is not enough information given to determine what Mongo should do.

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