Michelle's accounting company is considering hiring a fifth bookkeeper. If the marginal product of the fifth bookkeeper is lower than the marginal revenue product but higher than the wage paid, how should the company classify this decision regarding hiring?

In this situation, the company should consider hiring the fifth bookkeeper because the benefits outweigh the costs. The marginal product of the bookkeeper is the additional work they can do, and since it is higher than the wage, it means the company will gain more value from their work than it will pay them. Even though the marginal product is lower than the marginal revenue product, which is the extra revenue generated by that worker, it still shows that hiring them is profitable. For example, if the bookkeeper can handle enough accounts to bring in $1,000, but their wage is $800, the company gains $200 in profit from this hire. Therefore, the company should go ahead and hire the fifth bookkeeper because it leads to a positive financial outcome.