The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?

Question

The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is  ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?

Quizplus · Accepted Answer

The marginal expenditure function of the coal mine is the cost of hiring an additional worker, which is equal to the wage rate plus any additional costs. In this case, since the market supply of coal miners is given by the equation W = 11Q, the marginal expenditure function for the coal mine can be written as:

ME = W + dW/dQ * Q

ME = W + 11

Therefore, the correct answer is B, which shows that the marginal expenditure function for the coal mine is W + 11.

The Solo Coal Mine Is the Only Employer in the Small