A firm currently has 5 workers, each paid $15 per hour. If it decides to hire a 6th worker, the hourly wage increases to $18 for all workers. What is the marginal cost of hiring the 6th worker? a. $3 b. $18 c. $15 d. $33
Added by Kristi S.
Step 1
Total cost = 6 workers * $18 per hour = $108 per hour Show more…
Show all steps
Your feedback will help us improve your experience
Sanchit Jain and 66 other Macroeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
BigBiz, a local monopsonist, currently hires 50 workers and pays them $\$ 6$ per hour. To attract an additional worker to its labor force, BigBiz would have to raise the wage rate to $\$ 6.25$ per hour. What is BigBiz's marginal factor cost? a. $\$ 6.25$ per hour b. $\$ 12.50$ per hour c. $\$ 18.75$ per hour d. $\$ 20.00$ per hour
Narayan H.
Consider a firm that manufactures surfboards. Presently, the firm is hiring 5 workers at a wage rate of R20/hour. The firm is able to produce 50 surfboards per hour. The firm decides to hire an additional worker. The marginal product of that worker is 30 surfboards per hour. What is the marginal cost of output associated with hiring the sixth worker? R20 R1.50 R0.67 R2 R30
Azat N.
Gary earns $\$ 15$ per hour at his job. He recently received a $7 \%$ raise. How much per hour was his raise? What is his new hourly rate?
Prealgebra Review
Decimals and Percents
Recommended Textbooks
Principles of Economics
Macroeconomics
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD