A Firm Can Hire Six Workers at a Wage Rate

question 168

Multiple Choice

A firm can hire six workers at a wage rate of $8 per hour but must pay $9 per hour to all of its employees to attract a seventh worker. The marginal wage cost of the seventh worker is

• A) $9.
• B) $10.
• C) $15.
• D) $21.

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Definitions:

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product.

Direct Labour

The workforce directly involved in producing goods or delivering services, whose costs are directly attributable to the products or services.

Manufacturing Overhead

All manufacturing costs except direct materials and direct labor.