A Worker Has a Marginal Product of 15 Units a Day

question 208

Essay

A worker has a marginal product of 15 units a day, each of which can be sold for $10. Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer.

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Definitions:

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a business.

Other Accounts Cr.

This term likely refers to the credit (Cr.) entries in accounts other than those frequently categorized, perhaps implying adjustments or less common financial transactions.

Purchases Journals

Accounting journals used to record all purchases of goods and services on credit for the purpose of resale.

Cash Receipts Journal

A dedicated accounting journal used to record all cash inflows or receipts, including cash sales and accounts receivable collections.