Economics 9708 · AS & A Level · 7.5

7.5 — practice question

A café owner close to a beach had five employees and paid each one $10 an hour. In the holiday season, two further employees were required. To attract the extra workers, the employer had to raise the hourly wage for every employee to $12 an hour. What was the marginal cost per hour of employing two additional staff?

  • A$2
  • B$24
  • C$34
  • D$84

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