a-firm-is-evaluating-whether-to-hire-an-additional-worker-the-marginal-benefit-o

Question

A firm is evaluating whether to hire an additional worker. The marginal benefit of hiring is $200 per day, and the marginal cost is $180 per day. What should the firm do?

Accepted Answer

Hire the additional worker because the marginal benefit exceeds the marginal cost.

Answer

Hire the additional worker only if the marginal cost is reduced to $150 per day.

Answer

Do not hire the additional worker because the marginal cost exceeds the marginal benefit.

Answer

Do not hire the additional worker because the marginal benefit is less than $250 per day.