$\begin{array}{cc}
\begin{array}{cc}
\
\begin{array}{c}
\text { Wage nate } \
\text { (dollars per hour) }
\end{array} & \begin{array}{c}
\text { Labor demanded } \
\text { (workers) }
\end{array} \
\hline \$ 26 & 0 \
22 & 2 \
18 & 4 \
14 & 6 \
10 & 8
\end{array}
\begin{array}{cc}
\text{Total labor}\
\text{cost-hourly}&\text{Marginal wage}\
\text{(dollars per hour)}&\text{(dollars per worker)}\
\hline
-&....\
-&-\
-&-\
-&-\
-&-
\end{array}
\end{array}$
$\text { Table } 31.1$ Table 31.1 shows the number of workers a firm is willing to hire per hour at different wage rates.Complete the table by computing the total wage bill (total labor cost) and the marginal wage.Which of the following wages, in Table 31.1, would allow the most workers to be hired?
A) $10 per hour.
B) $14 per hour.
C) $18 per hour.
D) $22 per hour.

Question

Quizplus · Accepted Answer

At a wage rate of $10 per hour, the firm is willing to hire 8 workers, which gives a total wage bill of $80 ($10 x 8). The marginal wage, which is the amount of additional wage paid to the last worker hired, is also $10.

At higher wage rates, the firm is willing to hire fewer workers, which results in a higher total wage bill and a higher marginal wage. Therefore, the best choice would be the lowest wage rate of $10 per hour, which allows the firm to hire the most workers and keep the labor cost low.

Table 31.1\text { Table } 31.1 Table 31.1 Table 311 Shows the Number of Workers a Firm Is Willing

$\text { Table } 31.1$ Table 311 Shows the Number of Workers a Firm Is Willing