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 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c. Suppose some of the firm's capital is outdated and workers no longer have the ability to be as productive.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
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