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27 September, 16:48

Labracorp is looking to hire an unknown number of workers. jim wants to be one of those workers. what information would labracorp need in order to make a rational economic decision regarding jim's employment?

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  1. 27 September, 19:29
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    The answer is if Jim's marginal revenue is greater than his marginal cost.

    Marginal revenue refers to the value that will Jim give to the company if the company decided to employ Jim. (how much profit he will create for the company)

    The marginal cost on the other hand refers to the value that company must sacrifice in order to keep him working (the salary and benefit)
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