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3. You are HR director for a growing law firm, which currently has need of writing 24 legal briefs every hour. Each of your company's attorneys can...

This question was created from Assignment 4-FA17 AP2.docx https://www.coursehero.com/file/26547905/Assignment-4-FA17-AP2docx/

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**The numbers are edited here: You are HR director for a growing law firm, which currently has need of writing 24 legal briefs every hour. Each of your company's attorneys can write on average four briefs per hour. You are considering hiring four paralegals to shoulder the load; each paralegal is a bit slower than the attorneys and can write on average only three briefs per hour. You scan the current wages in the Shreveport-Bossier area (https://www.bls.gov/oes/current/oes_43340.htm) and notice that the attorneys in your company earn the local occupational median wage of $41.26 per hour, but that the prospective four paralegals will likely want to get paid their local occupational median wage of $26.06 per hour. Select one: a. Yes. The hiring of the paralegals increases the marginal product per dollar of lawyers and reduces the MP per dollar of paralegals, so the company benefits when the MP per dollar of the newly-hired paralegals decreases. b. No. Since the paralegals are less productive than the attorneys (in terms of writing speed), they would increase the cost per hour of writing. The company should not hire the four paralegals. c. Yes. The marginal product per dollar for lawyers is less than the MP per dollar for paralegals, so the company should hire the paralegals. The total cost of writing 24 legal briefs using only lawyers exceeds the total cost of writing 24 legal briefs using four paralegals and three attorneys. d. No. The ratio of wages (lawyer wage divided by paralegal wage) is greater than the ratio of marginal products (MP lawyers / MP paralegals), so the company should prefer to retain lawyers and should not hire the paralegals.

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