## order Group Title 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 one year ago one year ago

1. mustry Group Title

as u knw marginal cost =change in total cost/change in labour

2. order Group Title

Yup

3. mustry Group Title

so ll be mrgc=($610-$600)/(51-50)

4. order Group Title

So it would be 610-600/51-50 right? Which would be 10/1 right? Well, the answer isn't $10 :( 5. order Group Title That's what's bugging me.. the answer is actually$1110, and I don't know how to get to that.

6. mustry Group Title

ll be $10/1 so mrgcst=$10

7. order Group Title

It'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..

8. hba Group Title

$Marginal \ cost =\frac{ Change \ i n \ total \ cost }{Change \ i n \ output }=\frac{ \Delta TC }{ \Delta q }$

9. order Group Title

Yes, thanks... but that doesn't help :(

10. hba Group Title

I know that :P

11. hba Group Title

Well i guess the labour is increasing by 1/> And it goes from 600-610 So, 10 $Therfore, 10 /1=10 12. order Group Title The answer is$1110... I thought it was also $10... 13. hba Group Title Are you sure it is$ 1110 ?

14. order Group Title

Pretty sure, yeah, but not sure how to get to that answer...

15. hba Group Title

brb

16. order Group Title

Sure

17. mustry Group Title

its barely to knw

18. hba Group Title

Yuppie i got it :D

19. order Group Title

How?!

20. hba Group Title

It is easy :P

21. order Group Title

So say it!!!

22. hba Group Title

The 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) =31,100-30,000=1,100 $23. order Group Title Tricky 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?

24. hba Group Title

My friend who is doing his BBA at LSE.

25. order Group Title

What's BBA?

26. hba Group Title

27. mustry Group Title

good ideal @hba

28. hba Group Title

Whaaaat :o

29. mustry Group Title

thankx 4 assist

30. hba Group Title

Welcome :)

31. order Group Title

Yeah, this helped a lot!!!. Still going to have to watch my back with examiners

32. hba Group Title

Best of luck with that :)

33. phi Group Title

I 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

34. hba Group Title

^ Yeah that is correct :)