Day: July 26, 2019

A firm employs 60 workers, paying each worker £520 a week.

To attract an extra worker, the firm raises the wage of each worker to £540 a week.

What is the marginal cost of employing the 61st worker?

Select ONE answer:

1. £20
2. £540
3. £1,740
4. £32,940

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

1. This is the rise in pay each of the original workers receives.
2. This is the new wage.
3. Correct: the rise in total wages is £32,940 – £31,200 or £540+(60 * £20)
4. This is the new total wage bill

 

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