If 10 workers will be hired by a firm at a wage rate of $15 per hour,but the 11^th worker will be hired only if the wage rate falls to $14 per hour,then the marginal wage of the 11^th worker is A)$4 per hour. B)$14 per hour. C)$154 per hour. D)-$1 per hour.

Question

Quizplus · Accepted Answer

The marginal wage is the change in total wages divided by the change in the number of workers. In this case, the total wages increase by $14 when the 11th worker is hired, and the number of workers increases by 1. Therefore, the marginal wage is $14 / 1 = $14 per hour.

If 10 Workers Will Be Hired by a Firm at a Wage