A firm will expand production by 200 units and must hire at least one additional worker. The marginal product per day for one additional unskilled worker is 100 units, and for one additional skilled...


A firm will expand production by 200 units and must hire at least one additional worker. The marginal product per day for one additional unskilled worker is 100 units, and for one additional skilled worker it is 200 units. Wages per day are $200 for an unskilled worker and $450 for a skilled worker. The firm will most likely minimize costs at the higher level of production by hiring:


A. one additional skilled worker. B. two additional unskilled workers. C. either a skilled worker or two unskilled workers.



May 03, 2022
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