Exhibit 27-7 Refer to Exhibit 27-7. As the firm increases employment from 50 to 60 workers, by how much does total labor cost increase?
A)$210
B)$40
C)$10
D)$230

Question

Exhibit 27-7 ​  Refer to Exhibit 27-7. As the firm increases employment from 50 to 60 workers, by how much does total labor cost increase?
A)$210 
B)$40 
C)$10 
D)$230

Quizplus · Accepted Answer

To calculate the increase in total labor cost, we need to find the difference in total labor cost between 60 and 50 workers.
At 50 workers, the total labor cost is $2,800.
At 60 workers, the total labor cost is $3,030.
The increase in total labor cost is therefore $3,030 - $2,800 = $230. 
Therefore, the best choice is (D) $230.

Exhibit 27-7 ​ Refer to Exhibit 27-7

Exhibit 27-7 Refer to Exhibit 27-7