A Firm Pays the Same Wage Rate to All Its

question 8

Multiple Choice

A firm pays the same wage rate to all its workers. At present, 20 workers are employed at $50 per day. Wages are subsequently raised to $55 per day in order to attract an extra worker. Thus, the marginal labor cost per day is

• A)$5.
• B)$21.
• C)$55.
• D)$155.

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Definitions:

Costing

The process of determining the costs associated with the production of a product or the provision of a service.

Overconfidence

The psychological condition of being more confident than is justified; this can lead to mistakes and poor decision-making due to underestimating risks or overestimating one's abilities.

Political Change

Alterations in the governance, policies, or societal structures of a political entity, often leading to significant shifts in power dynamics.

Pro or Con Views

Refers to arguments or opinions in favor of (pro) or against (con) a particular topic, policy, or idea.