Consider labour that is hired for $18 per hour.If the last hour of labour hired produces 8 units of output which sells for $10 per unit,that labour- hour adds _ to the firm's profit and so labour should be hired.
A)$0; no
B)$62; more
C)$80; more
D)- $80; less
E)$62; less

Question

Quizplus · Accepted Answer

The last hour of labor produces 8 units of output, each selling for $10, generating $80 in revenue. The cost of hiring the labor is $18, so the profit added is $80 - $18 = $62. Therefore, more labor should be hired.

Consider Labour That Is Hired for $18 Per Hour