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order

  • one year 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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  1. mustry
    • one year ago
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    as u knw marginal cost =change in total cost/change in labour

  2. order
    • one year ago
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    Yup

  3. mustry
    • one year ago
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    so ll be mrgc=($610-$600)/(51-50)

  4. order
    • one year ago
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    So it would be 610-600/51-50 right? Which would be 10/1 right? Well, the answer isn't $10 :(

  5. order
    • one year ago
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    That's what's bugging me.. the answer is actually $1110, and I don't know how to get to that.

  6. mustry
    • one year ago
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    ll be $10/1 so mrgcst=$10

  7. order
    • one year ago
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    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
    • one year ago
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    \[Marginal \ cost =\frac{ Change \ i n \ total \ cost }{Change \ i n \ output }=\frac{ \Delta TC }{ \Delta q }\]

  9. order
    • one year ago
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    Yes, thanks... but that doesn't help :(

  10. hba
    • one year ago
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    I know that :P

  11. hba
    • one year ago
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    Well i guess the labour is increasing by 1/> And it goes from 600-610 So, 10 $ Therfore, 10 /1=10

  12. order
    • one year ago
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    The answer is $1110... I thought it was also $10...

  13. hba
    • one year ago
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    Are you sure it is $ 1110 ?

  14. order
    • one year ago
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    Pretty sure, yeah, but not sure how to get to that answer...

  15. hba
    • one year ago
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    brb

  16. order
    • one year ago
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    Sure

  17. mustry
    • one year ago
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    its barely to knw

  18. hba
    • one year ago
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    Yuppie i got it :D

  19. order
    • one year ago
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    How?!

  20. hba
    • one year ago
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    It is easy :P

  21. order
    • one year ago
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    So say it!!!

  22. hba
    • one year ago
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    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
    • one year ago
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    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
    • one year ago
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    My friend who is doing his BBA at LSE.

  25. order
    • one year ago
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    What's BBA?

  26. hba
    • one year ago
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    Bachelor's in Business Administration.

  27. mustry
    • one year ago
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    good ideal @hba

  28. hba
    • one year ago
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    Whaaaat :o

  29. mustry
    • one year ago
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    thankx 4 assist

  30. hba
    • one year ago
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    Welcome :)

  31. order
    • one year ago
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    Yeah, this helped a lot!!!. Still going to have to watch my back with examiners

  32. hba
    • one year ago
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    Best of luck with that :)

  33. phi
    • one year ago
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    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
    • one year ago
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    ^ Yeah that is correct :)

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