$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Hourly Wage } \
\text { Rate }
\end{array} & \begin{array} { c }
\text { Output per Hour of } \
\text { Work }
\end{array} \
\hline \$ 10 & 6 \
\hline 9 & 6 \
\hline 8 & 4 \
\hline 7 & 2 \
\hline 6 & 1 \
\hline
\end{array}$$ Refer to the table. At the $8 wage, labor cost per unit of output is
A) $1.25.
B) $1.50.
C) $2.00.
D) $1.67.

Question

$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Hourly Wage } \
\text { Rate }
\end{array} & \begin{array} { c } 
\text { Output per Hour of } \
\text { Work }
\end{array} \
\hline \$ 10 & 6 \
\hline 9 & 6 \
\hline 8 & 4 \
\hline 7 & 2 \
\hline 6 & 1 \
\hline
\end{array}$$ Refer to the table. At the $8 wage, labor cost per unit of output is
A) $1.25.
B) $1.50.
C) $2.00.
D) $1.67.

Quizplus · Accepted Answer

To find labor cost per unit of output, we need to divide the hourly wage rate by the output per hour of work. For the $8 wage, the output per hour of work is 4 units. Therefore, labor cost per unit of output is:

$8/4 = $2.00

So the best choice is C, $2.00.

Refer to the Table