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 2 years ago
To increase its labour force from 50 to 51 workers, a firm has to increase the daily wage rate from $600 to $610.
What is the marginal cost of labour per day?
A $10 B $510 C $610 D $1110
 2 years ago
To increase its labour force from 50 to 51 workers, a firm has to increase the daily wage rate from $600 to $610. What is the marginal cost of labour per day? A $10 B $510 C $610 D $1110

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mustry
 2 years ago
Best ResponseYou've already chosen the best response.0as u knw marginal cost =change in total cost/change in labour

mustry
 2 years ago
Best ResponseYou've already chosen the best response.0so ll be mrgc=($610$600)/(5150)

order
 2 years ago
Best ResponseYou've already chosen the best response.0So it would be 610600/5150 right? Which would be 10/1 right? Well, the answer isn't $10 :(

order
 2 years ago
Best ResponseYou've already chosen the best response.0That's what's bugging me.. the answer is actually $1110, and I don't know how to get to that.

mustry
 2 years ago
Best ResponseYou've already chosen the best response.0ll be $10/1 so mrgcst=$10

order
 2 years ago
Best ResponseYou've already chosen the best response.0It's an advanced level question... so it's not meant to be that easy, and the answer isn't that... so I don't know..

hba
 2 years ago
Best ResponseYou've already chosen the best response.1\[Marginal \ cost =\frac{ Change \ i n \ total \ cost }{Change \ i n \ output }=\frac{ \Delta TC }{ \Delta q }\]

order
 2 years ago
Best ResponseYou've already chosen the best response.0Yes, thanks... but that doesn't help :(

hba
 2 years ago
Best ResponseYou've already chosen the best response.1Well i guess the labour is increasing by 1/> And it goes from 600610 So, 10 $ Therfore, 10 /1=10

order
 2 years ago
Best ResponseYou've already chosen the best response.0The answer is $1110... I thought it was also $10...

hba
 2 years ago
Best ResponseYou've already chosen the best response.1Are you sure it is $ 1110 ?

order
 2 years ago
Best ResponseYou've already chosen the best response.0Pretty sure, yeah, but not sure how to get to that answer...

hba
 2 years ago
Best ResponseYou've already chosen the best response.1The wage rate is actually per labour So, Lets calculate 1=(600 * 50) Now lets calculate the new one. 2=(610*51) Now to calculate marginal cost Subtract them :) So, (610*51)(600*50) =31,10030,000=1,100 $

order
 2 years ago
Best ResponseYou've already chosen the best response.0Tricky examiners!!!! Come, on, you would have gone with $10 at first glance... that's how they want students to fail!!! Thanks for pointing it out though... and they weren't specific with it being one labour's wage xD How did you figure that out?

hba
 2 years ago
Best ResponseYou've already chosen the best response.1My friend who is doing his BBA at LSE.

hba
 2 years ago
Best ResponseYou've already chosen the best response.1Bachelor's in Business Administration.

order
 2 years ago
Best ResponseYou've already chosen the best response.0Yeah, this helped a lot!!!. Still going to have to watch my back with examiners

phi
 2 years ago
Best ResponseYou've already chosen the best response.1I have not studied economics, but I would not overthink this problem 50 to 51 workers, a firm has to increase the daily wage rate from $600 to $610. What is the marginal cost of labour per day? the original cost per day is 50*600= 30000 the new cost per day is 51*610= 31110 So it looks like it costs $1110 per day to add 1 person
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