# Allison is debating about hiring Jim for a new position at her firm producing computer

Question: Allison is debating about hiring Jim for a new position at her firm producing computer software. She estimates that Jim will add an additional \$500 of revenue a day to her firm. Instructions: Enter your answers as a whole number. a. What is the maximum wage at which Allison would be willing to hire Jim? \$ a day b. Suppose demand for computerAllison is debating about hiring Jim for a new position at her firm producing computer software. She estimates that Jim will add an additional \$500 of revenue a day to her firm.

a. What is the maximum wage at which Allison would be willing to hire Jim?

\$ a day

b. Suppose demand for computer software increases. This increases the value of Jim’s contributions to the firm to \$650. What is the maximum wage at which Allison would be willing to hire Jim?

\$ a day

c. Suppose some of the firm’s capital is outdated and workers no longer have the ability to be as productive. This reduces Jim’s contributions to the firm to \$400. What is the maximum wage at which Allison would be willing to hire Jim?

\$ a day

d. Suppose Jim obtains additional education that leads to him being more productive. This increases the value of Jim’s contributions to the firm to \$750. What is the maximum wage at which Allison would be willing to hire Jim?

\$ a day

a) Since Jim will add additional revenue of \$500 to the firm, the maximum wage that Allison would be willing to pay is \$500. If the firm…View the full answer