19. The firm whose hourly data are given in the table to the right purchases inputs in perfectly competitive markets and sells output in a perfectly competitive market. Suppose it has to pay workers $20 per hour and suppose fixed costs work out to be $10 per hour. (This means that fixed costs are $87,500 per year). At this wage rate the approximate marginal cost of the 52nd unit of output is:
  1. $ 4.00
  2. $ 2.30
  3. $6.00
  4. $2.40
  5. $5.00
Workers Output
1 10
2 22
3 31
4 40
5 47
6 52
7 56
8 59
9 61
10 62

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