1. Allison is debating about hiring Jim for a new position at her firm producing computer software. She estimates that Jim will add an additional $500 of revenue a day to her firm.

a. What is the maximum wage at which Allison would be willing to hire Jim?

b. Suppose demand for computer software increases. This increases the value of Jim's contributions to the firm to $650. What is the maximum wage at which Allison would be willing to hire Jim?

c. Suppose some of the firm's capital is outdated and workers no longer have the ability to be as productive. This reduces Jim's contributions to the firm to $400. What is the maximum wage at which Allison would be willing to hire Jim?

d. Suppose Jim obtains additional education that leads to him being more productive. This increases the value of Jim's contributions to the firm to $750. What is the maximum wage at which Allison would be willing to hire Jim?