If the total wages paid change from $200,000 to $250,000 when the quantity of labor employed increases from five to seven workers,the marginal wage is
A)$35,714.
B)$25,000.
C)$250,000.
D)$50,000.

Question

Quizplus · Accepted Answer

To find the marginal wage, we need to divide the change in total wages ($50,000) by the change in quantity of labor employed (2 workers).

Marginal Wage = Change in Total Wages / Change in Quantity of Labor Employed 
Marginal Wage = ($250,000 - $200,000) / (7 - 5) 
Marginal Wage = $50,000 / 2 
Marginal Wage = $25,000

Therefore, the correct answer is B.

If the Total Wages Paid Change from $200,000 to $250,000