Use the figure below to answer the following questions.

Figure 19.3.2
-Refer to Figure 19.3.2. For the employer to hire 40 hours per week of both high-skilled and low-skilled labour,

Question

Use the figure below to answer the following questions.
  
Figure 19.3.2
-Refer to Figure 19.3.2. For the employer to hire 40 hours per week of both high-skilled and low-skilled labour,

Quizplus · Accepted Answer

To hire 40 hours per week of both high-skilled and low-skilled labour, the total wage paid to high-skilled workers and low-skilled workers must be equal (as shown by the budget line). Therefore, if the employer pays low-skilled workers $10 per hour, then high-skilled workers must be paid $12 per hour (which is $2 more than the wage paid to low-skilled workers). Thus, choice C is the correct answer.

Use the Figure Below to Answer the Following Questions