A firm can hire 20 workers for $10 per hour, but finds it must raise the...

A firm can hire 20 workers for $10 per hour, but finds it must raise the wage to $12 to attract another worker. If it must pay all its workers the same wage, the marginal wage cost of the 21st worker is _.

A.$10.
B. $11.
C. $21.
D. $31.

Solutions

Expert Solution

Correct Answer: D] $31

Explanation:

A firm can hire 20 workers for $10 per hour, the marginal wage cost of the 21st worker is 21 + 10 = $31

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

At the competitive wage of $20 per hour, firms A and B both hire 5,000 fulltime...

At the competitive wage of $20 per hour, firms A and B both hire 5,000 fulltime workers (2,000 hours per year). The elasticity of demand for firm A is -2.5 and the elasticity of demand for firm B is -0.75. Workers at both firms unionize and negotiate a 12 percent wage increase. a.What is the effect on employment at firm A? How has total worker income changed? b.What is the effect on employment at firm B? How has total worker...

A firm that wants to employ workers should a. hire workers as long as the wage...

A firm that wants to employ workers should a. hire workers as long as the wage is less than the value of the marginal product. b. not hire workers if the value of the marginal product is less than the wage. c. hire workers as long as the wage is lower than the marginal profit of the last or previously hired worker. d. hire workers as long as the wage is greater than the value of the marginal product.

A car can be produced by 20 workers in the United States, and by 10 workers...

A car can be produced by 20 workers in the United States, and by 10 workers in Germany. 1,000 chickens can be produced by 25 workers in the United States, and by 20 workers in Germany. a) Using charts, show how a shift of workers toward one of the two industries in the United States, coupled with a shift of workers toward the other in Germany, could result in increased total production of both goods in the two countries. (d)...

Assume a firm is a monopsonist that can hire its first worker for $6 but must...

Assume a firm is a monopsonist that can hire its first worker for $6 but must increase the wage rate by $3 to attract each successive worker (so that the second worker must be paid $9, the third $12, and so on). The marginal revenue product of labor is given in the table below. Units of Labor Marginal Revenue Product 0 1 $34 2 $28 3 $24 4 $20 5 $14 6 $10. Are the labor supply and MRC curves...

1. If the monopsony firm is a single-wage firm, then to hire more workers, the firm...

1. If the monopsony firm is a single-wage firm, then to hire more workers, the firm _____. a. must reduce wages b. must pay the new workers more c. must raise the wages of all workers d. will not change any wage 2. The local tennis stadium has a fixed number of seats for spectators. The equilibrium price to attend games for the Men's Championship is $15 and for Women's Championship is $25. Which of the following is true? a....

We know that a profit maximizing firm will hire workers as long as those workers generate...

We know that a profit maximizing firm will hire workers as long as those workers generate enough revenue to cover their wages. Why might a firm decide to pay an efficiency wage to workers? You should provide at least 2 reasons.

A firm agreed to pay its workers $18 an hour in 2016 and $21 an hour...

A firm agreed to pay its workers $18 an hour in 2016 and $21 an hour in 2017. The price level for these years was 241 in 2016 and 245 in 2017. Calculate the real wage rate in each year (to the nearest cent). What is the real wage increase received by these workers in 2017?

How many workers will the firm hire if the market wage rate is $28.75?

Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market.UnitsoflaborTotalproductMarginalproductProductpriceTotalrevenueMarginalrevenueproduct01234560213853647175$3.753.753.753.753.753.753.75Complete the table above and Answer the following Question:How many workers will the firm hire if the market wage rate is $28.75? Explain why the firm will not hire a larger or smaller number of units of labor at each of these wage rates.

Suppose the wage rate offered by a firm is $10 per hour and the rental rate...

Suppose the wage rate offered by a firm is $10 per hour and the rental rate of capital is $25 per hour. (a) What does an isocost line measure? Write the equation for the isocost line for the firm. (b) Illustrate (with labour on the horizontal axis and capital on the vertical axis) the isocost line for C=$800. Label the horizontal and vertical intercepts on your diagram. Calculate and label the slope of the isocost line. (c) Suppose the price...

A sandwich shop needs to hire sandwich makers. It can hire low productivity workers (x1), high...

A sandwich shop needs to hire sandwich makers. It can hire low productivity workers (x1), high productivity workers (x2), or a combination of both. The firm’s production function is: f(x1, x2) = x1+2x2 a) What kind of production function does the firm have? b) The firm is willing to pay low productivity workers $15/hour. What is the most it would be willing to pay high productivity workers if it is to hire any high productivity workers? c) Suppose the firm...

Subjects