56.
A company uses three types of labor—unskilled, semiskilled, and skilled—in the production of electronic components. The company's production plan allows for the substitution of one type of labor for another. The marginal product and compensation in U.S. dollars is as follows:
Type of Labor Marginal Product per Day Compensation per Day (US$) Unskilled 200 units 105 Semiskilled 300 units 160 Skilled 500 units 270 Assuming that the compensation of the unskilled labor increases by 4%, what labor type should the company most likely hire when expanding output? A. Semiskilled B. Skilled C. Unskilled
