Consider a Small,remote Town with Only One Employer - a Gold

question 79

Multiple Choice

Consider a small,remote town with only one employer - a gold mining company.Suppose the current work force is 875 workers,each of whom is paid $6000 per month.In order to attract one additional worker,the employer must increase the wage to $6025 per month.The marginal cost of this additional worker is

• A)$21 875 per month.
• B)$21 900 per month.
• C)$27 900 per month.
• D)$5.25 million per month.
• E)$5.28 million per month.

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Definitions:

Bonus

An extra payment given to employees as an incentive or reward beyond their regular compensation.

Admission Fee

A charge for entry, often used in the context of events, clubs, or institutions.

Capital Balance

The amount of money in a firm's capital account, reflecting the owner's initial investment plus retained earnings.

Profits and Losses

A financial statement that shows the revenue, costs, and expenses over a certain period, determining the company's net income or loss.