In a given firm, skilled workers currently produce twice as much of its product as unskilled workers do per hour worked. Skilled workers earn $20 per hour, and unskilled workers earn $8 per hour. Based on this information, the firm should: A. keep things as they are. B. increase the use of skilled workers and/or decrease the use of unskilled workers. .•. C. increase the use of unskilled workers and/or decrease the use of skilled workers. D. increase the salary of skilled workers to attract more of them.
C based on my quick read. A. Irrelevant D. Irrelevant B. Seems wrong
Marginal Product per dollar is higher for unskilled. You would allocate more to unskilled until both are equal.
thnx…