Please read the questions! Answer and provide work! Do not forget to select an a

ID: 2441590 • Letter: P

Question

Please read the questions! Answer and provide work! Do not forget to select an answer a, b, c or d after providing work!

You are HR director for a growing law firm in Tampa, Florida, which currently has need of writing 30 legal briefs every hour. Each of your company’s attorneys can write on average five 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 2.5 briefs per hour. You scan the current wages in the Tampa area (https://www.bls.gov/oes/current/oes_45300.htm) and notice that the attorneys in your company earn the local occupational median wage of $41.64 per hour, but that the prospective four paralegals will likely want to get paid their local occupational median wage of $23.66 per hour.

Question 6

Not yet answered

Marked out of 1.00

Remove flag

Question text

a.) Would your company save money in the writing of the 30 legal briefs by hiring the four new paralegals and firing some attorneys?

Select one:

a. No. The marginal product per dollar for lawyers is greater than the MP per dollar for paralegals, so the company should not hire the paralegals. The total cost of writing 30 legal briefs using only lawyers is less than the total cost of writing 30 legal briefs using four paralegals and four attorneys.

b. 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.

c. 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.

d. Yes. Since the paralegals are less productive than the attorneys (in terms of writing speed), they would be cheaper in terms of cost per hour of writing. The company should hire the four paralegals.

Question 7

Not yet answered

Marked out of 1.00

Remove flag

Question text

b.) The local Tampa Paralegal Union has observed that the Bureau of Labor Statistics projects that employment of paralegals over the next decade will rise considerably faster than the employment of lawyers (https://www.bls.gov/emp/ep_table_107.htm) because paralegals are becoming more skilled. As evidence, they cite newly-graduated paralegals who are able to write on average 3.75 briefs per hour. If the other values remain the same (attorney wage and writing speed, need for 30 briefs per hour), would the company save money in the writing of the 30 legal briefs by hiring four newly-graduated paralegals and firing some attorneys?

Select one:

a. No. The higher productivity of the attorneys is the only relevant factor and since the paralegal marginal product is still less than that of attorneys, they should not be hired.

b. No. The cost of the four paralegals is more than the cost of three attorneys, so paralegals produce a single legal brief more expensively than attorneys.

c. Yes. The four paralegals lead to a minimization of marginal product per dollar, which is preferred by the company.

d. Yes. The increased productivity results in the marginal product per dollar of paralegals being above the marginal product per dollar of lawyers. The cost of using only lawyers is now more expensive than using four paralegals and four lawyers.

Explanation / Answer

(A) In this case cost of hiring paralegal is more than the cost of attorney, as to write 30 briefs per hour 6 (30/5=6) attorney generals are needed which will cost $249.84 (6*41.64) or 12 (30/2.5=12) paralegals are needed and will cost 283.92(12*23.66)

(B) here paralegals will cost less i.e. 189.28 as 8 (30/3.75=8) paralegals will be needed (8*23.66)

Navigate

Please read the questions carefully, use only Unit factor method and show all yo

Please read the relevant parts of your textbook, which refer to cash flow and fi

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

Please read the questions! Answer and provide work! Do not forget to select an a

Question

Explanation / Answer

Related Questions

Navigate