Answer:
b. Jacob should be hired at the $20 per hour wage rate
Options
a. Sophia should do the drafting work herself because she has the lower opportunity cost
b. Jacob should be hired at the $20 per hour wage rate
c. Sophia should not hire Jacob because it would be faster for her to do the work herself
d. Jacob should be hired, but only if he is paid more than $30 per hour
Explanation:
Sophia cannot fullfil their client request on time without hiring an employee Assuming Jacob is the best possible candidate for Sophie she should consider to hire it as three hours of Jabor will cost 60 dollars while an hour of his work is worth 90 dollars
Thus, making convinient to hire it as there is a profit of 30 dollars.
We should also conider jacob will earn experience over time and this will make it a better employee in the long-run.
