A firm wishes to fire an employee. The company will save up to $300 . per month on his compensation package. It is estimated that the employee contributes around $4,100 to the company. The firm
a. Should not fire the employee because the benefits outweigh the costs
b. Should fire the employee if the hidden cost of not firing him is $500
c. Should fire the employee if the hidden cost of not firing him is $1500
d. Need more information
c
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What does the negative slope of the utilities possibilities frontier imply?
A) Diminishing marginal utility. B) The only way to increase one person's utility is to decrease another person's utility. C) Diminishing marginal rates of substitution. D) The only way to increase output of one good is to decrease output of another.
According to the quantity theory of money, if there are fewer dollars available to spend on the same number of goods and services, then:
A. the price level will fall. B. the price level will rise. C. output will decrease. D. output will increase.
Economic cost is:
A. Equal to explicit costs minus implicit costs. B. The same as dollar costs. C. Equal to the accounting cost minus implicit costs. D. The value of all resources used to produce a good or service.
Refer to the graph shown. If government establishes a minimum wage at $7.25 per hour:
A. there will be a shortage in this labor market. B. employers will be unable to find enough qualified applicants to fill the available positions. C. the number of job seekers will exceed the number of job vacancies, resulting in some unemployment. D. employers will be forced to hire 900 workers, resulting in reduced profits.