A retailer has to pay $9 per hour to hire 13 workers.If the retailer only needs to hire twelve workers,a wage rate of $7 per hour is sufficient.What is the marginal cost of the 13th worker?

Question

Quizplus · Accepted Answer

The marginal cost of the 13th worker is the additional cost incurred by hiring one more worker. The cost for 12 workers at $7 per hour is $84 (12 workers * $7). The cost for 13 workers at $9 per hour is $117 (13 workers * $9). The marginal cost is $117 - $84 = $33.

A Retailer Has to Pay $9 Per Hour to Hire