Asked by Jacob Liscinsky on May 12, 2024
Verified
Answer the question on the basis of the following supply information facing a single firm in a particular labor market: WageQuantity Rate Supplied $51102153204255\begin{array}{l}\text { Wage} \quad\quad{Quantity }\\\begin{array} { c c c } \text { Rate } && \text { Supplied } \\\hline\$ 5 & & 1 \\10 & & 2 \\15 & & 3 \\20 & & 4 \\25 & & 5\end{array}\end{array} WageQuantity Rate $510152025 Supplied 12345 Refer to the given information.The marginal resource (labor) cost of the third worker is:
A) $15.
B) $25.
C) $35.
D) $45.
Marginal Resource Cost
The additional cost incurred by using one more unit of a resource in the production process, often linked to labor or material inputs.
Labor Market
encompasses the supply of labor (workers seeking employment) and demand for labor (employers seeking workers) within an economy, influencing wages and employment levels.
- Comprehend the process utilized by businesses to set employment numbers and salary rates within competitive versus monopsonistic environments.
- Evaluate how marginal product and marginal wage cost influence employment choices.
Verified Answer
KA
kaylee abneyMay 12, 2024
Final Answer :
B
Explanation :
The marginal resource (labor) cost is the cost of hiring one additional worker. In this case, the marginal cost of the third worker would be the difference in total cost between having two workers and having three workers.
Using the given information, we can see that the total cost of hiring two workers is $20 (2 workers x $10 wage rate). The total cost of hiring three workers is $45 (3 workers x $15 wage rate).
Therefore, the marginal resource (labor) cost of the third worker is $25 ($45 - $20). So, the answer is B) $25.
Using the given information, we can see that the total cost of hiring two workers is $20 (2 workers x $10 wage rate). The total cost of hiring three workers is $45 (3 workers x $15 wage rate).
Therefore, the marginal resource (labor) cost of the third worker is $25 ($45 - $20). So, the answer is B) $25.
Learning Objectives
- Comprehend the process utilized by businesses to set employment numbers and salary rates within competitive versus monopsonistic environments.
- Evaluate how marginal product and marginal wage cost influence employment choices.
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