A firm currently has 5 workers each paid $15 per hour. If it decides to hire a 6th worker, the hourly wage increases to $18 for all workers. The 6th worker is expected to contribute to around $40 worth of output. Based on this information, the firm should

An insurance agent rents a building and has a three-year lease. An increase in the rent for the building increases the agent's

A) total cost and average variable cost. B) total variable cost and average variable cost. C) total fixed cost and total variable cost. D) total fixed cost and average fixed cost. E) total variable cost and total cost.

The value of the marginal product of labor is calculated by multiplying the

a. price of output by the quantity of labor. b. price of output by the marginal product of labor. c. wage by the quantity of labor. d. wage by the marginal product of labor.