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:
- £20
- £540
- £1,740
- £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
- This is the rise in pay each of the original workers receives.
- This is the new wage.
- Correct: the rise in total wages is £32,940 – £31,200 or £540+(60 * £20)
- This is the new total wage bill
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