Edexcel A-Level Economics A2 Qs6 Revenue Cost and Profit Calculations Questions

Practise calculating the marginal labour cost of one extra hire when the higher wage must also be paid to every existing worker.

Exam points

calculate marginal labour cost from the change in total wages when one extra worker raises every wage

[Maximum number: 1]

A car manufacturer employs 40 engineers at a wage rate of $ 570 per week. To attract an additional worker, the car manufacturer must raise the wage rate for all engineers to $590 per week.

What is the marginal cost of employing this additional worker?

$ 20

$ 820

$ 1390

$ 24190

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Edexcel A-Level Economics A2 Qs6 Revenue Cost and Profit Calculations Questions question 1