Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The skills and qualifications of the candidate
B
The total cost of current staff
C
The level of unemployment in the market
D
The potential productivity generated by the new hire
Understanding the Answer
Let's break down why this is correct
Answer
In marginal analysis for hiring, the main factor employers consider when deciding on the wage rate for new employees is the additional value that each new employee brings to the company. Employers analyze how much extra profit or productivity a new worker will generate compared to their cost, which includes the wage they will pay. For example, if a new employee can help produce more products that lead to higher sales, the employer will weigh the potential increase in revenue against the wage they need to offer. If the value the employee adds is greater than the wage, it makes sense for the employer to hire them at that rate. Ultimately, employers aim to balance costs with the benefits to ensure they make a wise financial decision.
Detailed Explanation
Employers look at how much extra work a new employee can do. Other options are incorrect because Some might think that a candidate's skills are the most important; It's easy to believe that the total cost of current staff is key.
Key Concepts
wage rate
Topic
Marginal Analysis in Hiring
Difficulty
easy level question
Cognitive Level
understand
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