A firm can hire 8 workers at a wage rate of $7 per hour but must pay $8 per hour to all of its employees to attract a ninth worker. The marginal wage cost of the ninth worker is

A) $8.
B) $9.
C) $16.
D) $72.

Question

Kamal Baghla · Accepted Answer

Final Answer : C, Explanation :  The marginal wage cost of the ninth worker includes the $8 per hour for the ninth worker plus an additional $1 per hour for each of the 8 workers already hired (since their wage increases from $7 to $8 to attract the ninth worker), totaling $8 + (8 * $1) = $16.

A firm can hire 8 workers at a wage rate of $7 per hour but must pay $8 per hour to all of its employees to attract a ninth worker. The marginal wage cost of the ninth worker is

A) $8.
B) $9.
C) $16.
D) $72.

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Learning Objectives

Related questions

A firm can hire 8 workers at a wage rate of $7 per hour but must pay $8 per hour to all of its employees to attract a ninth worker. The marginal wage cost of the ninth worker isA) $8.B) $9.C) $16.D) $72.

Definitions

Learning Objectives

Learning Objectives

Related questions

A firm can hire 8 workers at a wage rate of $7 per hour but must pay $8 per hour to all of its employees to attract a ninth worker. The marginal wage cost of the ninth worker is

A) $8.
B) $9.
C) $16.
D) $72.