Question

A firm employs 10 workers. Each worker is paid a weekly wage of $200 and produces 50 goods per week. What is the average cost of labour per good produced?

Answer 1

Number of workers employed : 10

Weekly wage of each worker : $200

Weekly total wage of labour : 200 x 10 = $2000

Goods produced every week : 50

Average money to produce one good : 2000/50 : $40 ANSWER.