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.