Use the figure below to answer the following questions. Figure 18.3.2
-Refer to Figure 18.3.2.At a wage rate of $15,an employer would hire

Question

Use the figure below to answer the following questions.  Figure 18.3.2
-Refer to Figure 18.3.2.At a wage rate of $15,an employer would hire

Quizplus · Accepted Answer

At a wage rate of $15, the employer will hire the quantity of each type of worker where the cost (wage) of hiring each worker equals their marginal product (the additional output each worker contributes to production). From the graph, at a wage rate of $15, the marginal product of the last low-skilled worker hired is 20 and the marginal product of the last high-skilled worker hired is 60. Therefore, the employer will hire 20 hours of low-skilled labor and 60 hours of high-skilled labor. Choice A is incorrect because the marginal products are not equal. Choices B, C, and E are incorrect because they do not hire the quantity where the cost equals the marginal product.

Use the Figure Below to Answer the Following Questions