Question

A​ profit-maximizing monopolist hires workers in a perfectly competitive labor market. Employing the last worker increased the​ firm's total weekly output from 110 units to 111 units and caused the​ firm's weekly revenues to rise from ​$25 comma 25025,250 to ​$25 comma 75025,750. What is the current prevailing weekly wage rate in the labor​ market

Answer 1

Answer:

$500

Explanation:

The computation of the current prevailing weekly wage rate in the labor​ market is shown below:

= Firm weekly revenues for firm's total weekly output of 111 units - Firm weekly revenues for firm's total weekly output of 110 units

= $25,750 - $25,250

= $500

Simply we deduct the revenue of 111 units by the revenue of 110 units, so that the actual wage rate can come