Giving each firm that hires one or more welfare workers a payment of $1,000 per year, irrespective of the O A. successful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the marginal cost of labor by $1,000 per worker, increasing employment O B. successful at increasing employment by one additional worker because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the marginal cost of labor by $1,000 for the first worker hired. O C. unsuccessful at increasing employment because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach does not affect the marginal cost of labor. O D. successful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the marginal cost of labor by $1,000 divided by the number of additional workers hired, increasing employment. O E. unsuccessful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the marginal cost of labor by $1,000 divided by the number of additional workers hired, which decreases as additional workers are hired.
Giving each firm that hires one or more welfare workers a payment of $1,000 per year, irrespective of the O A. successful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the marginal cost of labor by $1,000 per worker, increasing employment O B. successful at increasing employment by one additional worker because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the marginal cost of labor by $1,000 for the first worker hired. O C. unsuccessful at increasing employment because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach does not affect the marginal cost of labor. O D. successful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the marginal cost of labor by $1,000 divided by the number of additional workers hired, increasing employment. O E. unsuccessful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the marginal cost of labor by $1,000 divided by the number of additional workers hired, which decreases as additional workers are hired.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Giving each firm that hires one or more welfare workers a payment of $1.000 per year, irrespective of the number it hires, is likely to be
O A. successful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the
marginal cost of labor by $1,000 per worker, increasing employment
O B. successful at increasing employment by one additional worker because firms hire workers such that the marginal revenue product of labor equals the
marginal cost of labor, and this approach reduces the marginal cost of labor by $1,000 for the first worker hired.
O C. unsuccessful at increasing employment because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and
this approach does not affect the marginal cost of labor.
O D. successful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the
marginal cost of labor by $1,000 divided by the number of additional workers hired, increasing employment.
O E. unsuccessful because firms hire workers such that the marginal revenue product of labor equals the marginal cost of labor, and this approach reduces the
marginal cost of labor by $1,000 divided by the number of additional workers hired, which decreases as additional workers are hired.
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