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

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Quizplus · Accepted Answer

The marginal wage is the additional cost of hiring one more worker. If the wage rate drops to $14 per hour for the 11th worker, the firm saves $1 per hour for each of the 10 workers already employed, totaling $10 saved. The 11th worker costs $14 per hour, so the marginal wage is $14 - $10 = $4 per hour.

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