Your employer has asked you to start working overtime and has offered to pay $18 per hour for every hour you work beyond forty hours a week. The wage rate for each of the first forty hours will continue to be the usual $15 per hour. In terms of dollars, what is the marginal benefit of working each hour of overtime?

Question

Quizplus · Accepted Answer

The marginal benefit of working each hour of overtime is the additional amount earned per hour worked beyond the usual wage rate of $15 per hour. Therefore, the marginal benefit of each hour of overtime is $18 - $15 = $3.00.

Your Employer Has Asked You to Start Working Overtime and Has