If 9 units of labor will be supplied if the wage rate is $12 and 10 units of labor will be supplied if the wage rate is $14, then the marginal factor cost for the tenth unit of labor is
A)Less than $12
B)$12
C)Between $12 and $14
D)More than $14

Question

Quizplus · Accepted Answer

The marginal factor cost is the additional cost of hiring one more unit of labor. The cost increases from $12 to $14 when one more unit is supplied, indicating the marginal factor cost for the tenth unit is more than $14.

If 9 Units of Labor Will Be Supplied If the Wage