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

Question

Quizplus · Accepted Answer

The change in wages is $50,000 ($250,000 - $200,000).

The change in labor is 2 workers (7 - 5).

To find the marginal wage, we divide the change in wages by the change in labor:

Marginal wage = $50,000 / 2 = $25,000.

Therefore, the answer is B.

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