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19 votes
19 votes
Aliyah is preparing to expand her IT consulting company. The current market rate for IT professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that costs $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $10,000 per year.

The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompanying table.

User Oldestlivingboy
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1 Answer

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12 votes

Answer:

Each new employee Aliyah hires, will cost her 58000+6000=64000 more per year. This is the Marginal Cost (The cost of hiring one more worker) is for Aliyah. The Marginal benefit (the benefit each new worker brings) would depend upon how many new client

Step-by-step explanation:

User WinOrWin
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