A firm now employs 30 workers, each paid a daily wage of $50. The marginal cost of taking on one additional worker is $112 per day. How much must the firm raise the daily wage to expand its labour force from 30 to 31 workers?
- A$2
- B$4
- C$62
- D$112
Economics 9708 · AS & A Level · Long-run costs and economies of scale
A firm now employs 30 workers, each paid a daily wage of $50. The marginal cost of taking on one additional worker is $112 per day. How much must the firm raise the daily wage to expand its labour force from 30 to 31 workers?