Asked by
tiffany capella
on Dec 19, 2024Verified
A firm pays the same wage rate to all its workers. At present, 20 workers are employed at $50 per day. Wages are subsequently raised to $55 per day in order to attract an extra worker. Thus, the marginal labor cost per day is
A) $5.
B) $21.
C) $55.
D) $155.
Marginal Labor Cost
The additional cost incurred by hiring one more unit of labor or the cost of producing one additional unit of output with an additional unit of labor.
Wage Rate
The standard amount of compensation individuals receive in exchange for their labor or services, typically expressed per hour, day, or piece rate.
- Compute and comprehend the principle of marginal labor cost.
Verified Answer
HM
Learning Objectives
- Compute and comprehend the principle of marginal labor cost.