A firm is currently employing 10 workers.To hire an 11th worker,it must raise its weekly pay by $5 and pay the 11th worker $100.What is the marginal expense of the hiring the 11th worker?
A) $100
B) $150
C) $105
D) $5

Question

Quizplus · Accepted Answer

The marginal expense of hiring the 11th worker includes the $100 wage for the new worker plus an additional $5 for each of the 10 existing workers, totaling $50 (10 workers * $5). Therefore, the total marginal expense is $100 + $50 = $150.

A Firm Is Currently Employing 10 Workers