Comfy Clothing is thinking of hiring Tom. If hired, he can increase total production by 100 units a week. He would cost the firm 1,500 a week in wages. If the price of each unit is 20,
a. The MR of hiring the worker is 1,500
b. The MC of hiring Tom is 1,500
c. The firm should hire Tom since MR>MC
d. All the above
Question 2
Why would large department stores such as Home Depot rather face shortages than increase the prices of basic food and repair items in cases of natural disasters such as Hurricanes?
a. They do not want to increase sales
b. They are maximizing sales
c. They do not want to be viewed as unfair
d. All of the above
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