Table 311 Table 311 Shows the Number of Workers a Firm Is Willing

question 12

Multiple Choice

Table 31.1 $$\begin{array} { | r | c | c | c | } \hline \begin{array} { c } \text { Wage rate (dollars } \\\text { per hour) }\end{array} & \begin{array} { c } \text { Labor demanded } \\\text { (workers) }\end{array} & \begin{array} { c } \text { Total labor cost } \\\text { (dollars per hour) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Wage (dollars per } \\\text { worker) }\end{array} \\\hline \$ 26 & 0 & & \text { - } \\\hline 24 & 2 & & \\\hline 18 & 4 & & \\\hline 14 & 6 & & \\\hline 10 & 8 & & \\\hline\end{array}$$ Table 31.1 shows the number of workers a firm is willing to hire per hour at different wage rates.Complete the table by computing the total wage bill (total labor cost) and the marginal wage.Assume the union collects dues of 1 percent of the total wage bill.At what wage in Table 31.1 would the union maximize the amount of dues it collects?

• A)$10 per hour.
• B)$14 per hour.
• C)$18 per hour.
• D)$22 per hour.

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Definitions:

Economy

A framework for creating, distributing, and utilizing goods and services in a specific geographic region.

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A boost in the purchasing power adjusted market value of goods and services an economy creates over time.

Long Run

A period in economics sufficient for all markets to adjust, including production facilities and labor.

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A resource, either financial or physical, that is employed with the aim of generating wealth through investment or production.