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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
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

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mustry Group TitleBest ResponseYou've already chosen the best response.0
as u knw marginal cost =change in total cost/change in labour
 one year ago

mustry Group TitleBest ResponseYou've already chosen the best response.0
so ll be mrgc=($610$600)/(5150)
 one year ago

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

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

mustry Group TitleBest ResponseYou've already chosen the best response.0
ll be $10/1 so mrgcst=$10
 one year ago

order Group TitleBest ResponseYou've already chosen the best response.0
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..
 one year ago

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

order Group TitleBest ResponseYou've already chosen the best response.0
Yes, thanks... but that doesn't help :(
 one year ago

hba Group TitleBest ResponseYou've already chosen the best response.1
I know that :P
 one year ago

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

order Group TitleBest ResponseYou've already chosen the best response.0
The answer is $1110... I thought it was also $10...
 one year ago

hba Group TitleBest ResponseYou've already chosen the best response.1
Are you sure it is $ 1110 ?
 one year ago

order Group TitleBest ResponseYou've already chosen the best response.0
Pretty sure, yeah, but not sure how to get to that answer...
 one year ago

mustry Group TitleBest ResponseYou've already chosen the best response.0
its barely to knw
 one year ago

hba Group TitleBest ResponseYou've already chosen the best response.1
Yuppie i got it :D
 one year ago

order Group TitleBest ResponseYou've already chosen the best response.0
So say it!!!
 one year ago

hba Group TitleBest ResponseYou've already chosen the best response.1
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) =31,10030,000=1,100 $
 one year ago

order Group TitleBest ResponseYou've already chosen the best response.0
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?
 one year ago

hba Group TitleBest ResponseYou've already chosen the best response.1
My friend who is doing his BBA at LSE.
 one year ago

hba Group TitleBest ResponseYou've already chosen the best response.1
Bachelor's in Business Administration.
 one year ago

mustry Group TitleBest ResponseYou've already chosen the best response.0
good ideal @hba
 one year ago

mustry Group TitleBest ResponseYou've already chosen the best response.0
thankx 4 assist
 one year ago

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

hba Group TitleBest ResponseYou've already chosen the best response.1
Best of luck with that :)
 one year ago

phi Group TitleBest ResponseYou've already chosen the best response.1
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
 one year ago

hba Group TitleBest ResponseYou've already chosen the best response.1
^ Yeah that is correct :)
 one year ago
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