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

question 78

Multiple Choice

-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.Which of the following wages,in Table 31.1,would allow the most workers to be hired?

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

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Definitions:

Marginal Costs

The charge for generating one more unit of a product or service.

Average Fixed Costs

The total fixed costs of production divided by the quantity of output produced, indicating how fixed costs change with different levels of production.

Marginal Costs

The increase in total cost that arises from an extra unit of production.

Fixed Factors

Inputs in production that cannot be altered in the short term, such as buildings and machinery.