The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.

-Refer to the table above.Suppose the only variable input that the firm uses is labor.What is the wage paid to a worker in the firm?

Question

The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.
 
-Refer to the table above.Suppose the only variable input that the firm uses is labor.What is the wage paid to a worker in the firm?

Quizplus · Accepted Answer

Given that labor is the only variable input, the wage paid to a worker can be inferred from the marginal product of labor and how it affects total costs. Without the specific table data, the general approach to determine the wage would involve analyzing how additional units of labor (workers) change total output and the cost associated with these changes. The correct choice, C ($10), suggests that for each additional worker, the cost to the firm increases by this amount, assuming the marginal product of labor and the cost associated with hiring an additional worker are constant in this context.

The Following Table Shows the Total Output, Number of Workers