Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
B → D → A → C
B
D → A → B → C
C
A → C → D → B
D
B → A → C → D
Understanding the Answer
Let's break down why this is correct
Answer
To conduct a Marginal Product Analysis, you first need to determine the additional output from hiring one more unit of labor, which is step B. Next, you calculate the marginal product of labor in step D, which tells you how much extra output that labor produces. After that, you compare the marginal product of labor to its wage in step A to see if it’s worth the cost. Finally, you make a decision on hiring based on cost efficiency in step C, deciding whether to hire more labor based on this analysis. For example, if hiring one more worker increases production by 10 units and their wage is lower than the value of those extra units, it would make sense to hire them.
Detailed Explanation
First, you find out how much extra output you get from hiring one more worker. Other options are incorrect because This option starts with comparing output to wage, which is too early; This option skips calculating the marginal product first.
Key Concepts
Marginal Product Analysis
Resource Allocation
Cost Efficiency
Topic
Marginal Product Analysis
Difficulty
easy level question
Cognitive Level
understand
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