The marginal expenditure curve for labor is based on the assumption that:
A) the most productive workers are hired first.
B) the wage rate is independent of the quantity of labor employed.
C) the market supply curve for labor is infinitely elastic.
D) all workers are paid the same wage rate.
E) none of the above

Question

Quizplus · Accepted Answer

The marginal expenditure curve for labor assumes that all workers are paid the same wage rate, meaning that the cost of hiring an additional worker is the same as the wage rate paid to all workers.

The Marginal Expenditure Curve for Labor Is Based on the Assumption