A Firm Pays the Same Wage Rate to All Its

question 303

Multiple Choice

A firm pays the same wage rate to all its workers. At present, 10 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) $10.
• C) $55.
• D) $105.

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Definitions:

Overstaffing

The condition of having more employees than necessary, which can lead to reduced efficiency and increased costs.

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A strategy or process of separating a larger group into smaller groups or teams, often to facilitate focus, manageability, or diversity of thought.

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Limiting access or entry to a group or organization to certain individuals based on specific criteria.

Ecological Psychology

A branch of psychology focused on studying the relationship between organisms and their environment, emphasizing the importance of natural contexts for understanding behavior.