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A hand made paper workshop can hire 8 craftsmen by paying them Rs 400 per person per day. The 9th craftsman demands Rs 450 per day. If this craftsman is hired then all other craftsmen must be paid Rs 450. The marginal resource (labour) cost of the 9th craftsman is - 
  • a)
    Rs 50 
  • b)
    Rs 850 
  • c)
    Rs 800 
  • d)
    Rs 100 
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A hand made paper workshop can hire 8 craftsmen by paying them Rs 400 ...
Marginal cost is the change in the opportunity cost that arises when the quantity produced is incremented by one unit, that is, it is the cost of producing one more unit of a good. 
Total amount paid to 8 craftsman before demand of 9th craftsman = 8 ×400 
=3200 
Total amount paid to 9 craftsman after demand of 9th craftsman =9×450 
=4050 
Marginal cost=4050-3200 
=850 
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A hand made paper workshop can hire 8 craftsmen by paying them Rs 400 per person per day. The 9th craftsman demands Rs 450 per day. If this craftsman is hired then all other craftsmen must be paid Rs 450. The marginal resource (labour) cost of the 9th craftsman is -a)Rs 50b)Rs 850c)Rs 800d)Rs 100Correct answer is option 'B'. Can you explain this answer?
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A hand made paper workshop can hire 8 craftsmen by paying them Rs 400 per person per day. The 9th craftsman demands Rs 450 per day. If this craftsman is hired then all other craftsmen must be paid Rs 450. The marginal resource (labour) cost of the 9th craftsman is -a)Rs 50b)Rs 850c)Rs 800d)Rs 100Correct answer is option 'B'. Can you explain this answer? for Teaching 2024 is part of Teaching preparation. The Question and answers have been prepared according to the Teaching exam syllabus. Information about A hand made paper workshop can hire 8 craftsmen by paying them Rs 400 per person per day. The 9th craftsman demands Rs 450 per day. If this craftsman is hired then all other craftsmen must be paid Rs 450. The marginal resource (labour) cost of the 9th craftsman is -a)Rs 50b)Rs 850c)Rs 800d)Rs 100Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Teaching 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A hand made paper workshop can hire 8 craftsmen by paying them Rs 400 per person per day. The 9th craftsman demands Rs 450 per day. If this craftsman is hired then all other craftsmen must be paid Rs 450. The marginal resource (labour) cost of the 9th craftsman is -a)Rs 50b)Rs 850c)Rs 800d)Rs 100Correct answer is option 'B'. Can you explain this answer?.
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