-Anthony's Accountants is the only employer of accountants in the island of Fairisle. The table gives the demand and supply of accountants on Fairisle. The marginal cost of hiring a sixth accountant is _______ an hour.
A) $45
B) $15
C) $25
D) $20

Question

-Anthony's Accountants is the only employer of accountants in the island of Fairisle. The table gives the demand and supply of accountants on Fairisle. The marginal cost of hiring a sixth accountant is _______ an hour.
A) $45 
B) $15 
C) $25 
D) $20

Quizplus · Accepted Answer

The marginal cost of hiring a sixth accountant is the difference between the wage rate for the sixth accountant and the wage rate for the fifth accountant. The wage rate for the fifth accountant is $20 per hour, and the wage rate for the sixth accountant is $45 per hour. Therefore, the marginal cost of hiring a sixth accountant is $45 - $20 = $25 per hour.

-Anthony's Accountants Is the Only Employer of Accountants in the Island