The table below shows the total production for varying numbers of hours worked producing yo- yos.The firm sells its product and hires its workers in competitive markets. $$\begin{array} { | c | c | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { Hours Worked }
\end{array} & \begin{array} { c }
\text { Number of } \
\text { Yo-Yos } \
\text { Produced }
\end{array} & \begin{array} { c }
\text { Wage Rate } \
\text { per Hour } ( \$ )
\end{array} & \begin{array} { c }
\text { Price of Yo- Yos } \
( \$ )
\end{array} \
\hline 10 & 60 & 10 & 5 \
\hline 11 & 70 & 10 & 5 \
\hline 12 & 78 & 10 & 5 \
\hline 13 & 84 & 10 & 5 \
\hline 14 & 88 & 10 & 5 \
\hline 15 & 90 & 10 & 5 \
\hline
\end{array}$$ TABLE 13- 4
-Refer to Table 13- 4.What is the marginal cost of the variable factor employed by this firm?
A)$30
B)$10
C)$5
D)$0
E)$20

Question

The table below shows the total production for varying numbers of hours worked producing yo- yos.The firm sells its product and hires its workers in competitive markets. $$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Hours Worked }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { Yo-Yos } \
\text { Produced }
\end{array} & \begin{array} { c } 
\text { Wage Rate } \
\text { per Hour } ( \$ )
\end{array} & \begin{array} { c } 
\text { Price of Yo- Yos } \
( \$ )
\end{array} \
\hline 10 & 60 & 10 & 5 \
\hline 11 & 70 & 10 & 5 \
\hline 12 & 78 & 10 & 5 \
\hline 13 & 84 & 10 & 5 \
\hline 14 & 88 & 10 & 5 \
\hline 15 & 90 & 10 & 5 \
\hline
\end{array}$$ TABLE 13- 4
-Refer to Table 13- 4.What is the marginal cost of the variable factor employed by this firm?
A)$30
B)$10
C)$5
D)$0
E)$20

Quizplus · Accepted Answer

The marginal cost of the variable factor (labor) is the wage rate per hour, which is $10.

The Table Below Shows the Total Production for Varying Numbers