URGENT HEPL REQUIRED........

[saimaiftikhar92]

:Search:
PLEASE ANYONE HEPL ME SOLVE THIS MCQ OF ECONOMICS

Q) AN EMPLOYER CURRENTLY EMPLOYS 2OO WORKERS.
THE MARGINAL COST OF HIRING AN ADDITIONAL WORKER IS 5O2
IF THE EMPLOYER'S CURRENT WAGE BILL IS 20 000, BY HOW MUCH WILL THE WAGE PAID PER WORKER NEED TO BE INCREASED IN ORDER TO ATTRACT ONE MORE WORKER?

A)1.50DOLLARS
B)2.00DOLLARS
C)2.50DOLLARS
D)3.00DOLLARS



PLEASE POST THE ANSWER WITH FULL WORKING ASAP.......

 

[saimaiftikhar92]

PLEASE ......I NEED IT URGENT....

 

[destined007]

current wage=20000/200= $100
let x be the new wage
201(x)-20000= marginal cost=502
x=20502/201
x=$102

increase in wage=102-100= $2

 

[saimaiftikhar92]

WHY DID YOU SUBTRACTED 2O1 FROM 20000 AND THEN EQUALLED TO 502????

 

[destined007]

Marginal cost (in case of labor) is the cost incurred by hiring one more unit of labor. When one more unit of labor is hired the total number of labor becomes 201 and 201 x X will be the total cost incurred. If you subtract the previous total cost from this, you will get the marginal cost.

 

[saimaiftikhar92]

THAKYOU SO MUCH

 

[destined007]

Welcome