Tucker Corporation sells its product for $5.00. Tucker's industrial engineers have informed management that hiring one additional worker will increase output by five units per hour. Tucker should hire the additional worker only if the wage rate is:

A. $5.00 or less per hour.
B. $1.00 or more per hour.
C. $25.00 or less per hour.
D. more than $25.00 per hour.

Answer: C

Economics

You might also like to view...

The supply of bonds curve slopes upwards because

A) at higher prices, bonds pay higher interest which makes them more attractive to suppliers. B) lower prices raises the cost of borrowing which makes them less attractive to suppliers. C) at lower prices, bonds pay higher interest which makes them more attractive to suppliers. D) higher prices raise the cost of borrowing which makes them less attractive to suppliers.

Economics

Which of the following is not an assumption of the linear breakeven model:

a. constant selling price per unit b. decreasing variable cost per unit c. fixed costs are independent of the output level d. a single product (or a constant mix of products) is being produced and sold e. all costs can be classified as fixed or variable

Economics