Refer to Table 18-7. Suppose the firm sells each box of envelopes that it produces for $5. The firm would not be interested in hiring a fifth worker unless the wage fell from its current level of $393 to what level?

A) $386
B) $380
C) $376
D) $375

Question

Camille Labutong · Accepted Answer

Final Answer : D, Explanation :  The firm would not be interested in hiring a fifth worker unless the wage fell to a level where the cost of hiring the worker is equal to or less than the revenue generated by that worker. The marginal product of the fifth worker is 75 boxes of envelopes per week. At a selling price of $5 per box, the revenue generated by the fifth worker would be 75 boxes * $5/box = $375. Therefore, the firm would not be interested in hiring a fifth worker unless the wage fell to $375 or below, making option D correct.

Refer to Table 18-7. Suppose the firm sells each box of envelopes that it produces for $5. The firm would not be interested in hiring a fifth worker unless the wage fell from its current level of $393 to what level?

A) $386
B) $380
C) $376
D) $375

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Learning Objectives

Learning Objectives

Related questions

Refer to Table 18-7. Suppose the firm sells each box of envelopes that it produces for $5. The firm would not be interested in hiring a fifth worker unless the wage fell from its current level of $393 to what level?A) $386B) $380C) $376D) $375

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Table 18-7. Suppose the firm sells each box of envelopes that it produces for $5. The firm would not be interested in hiring a fifth worker unless the wage fell from its current level of $393 to what level?

A) $386
B) $380
C) $376
D) $375