A beedi making workshop can hire 5 women by paying them Rs 300 per day The 6th woman demands Rs 350 ...........

Indian Economy (Easy) Growth and development

A beedi making workshop can hire 5 women by paying them Rs. 300 per day. The 6th woman demands Rs. 350 per day. If this woman is hired then all other women must be paid Rs. 350. The marginal resource (labour) cost of the 6th woman is

Rs. 600

Rs. 50

Rs. 300

Rs. 100

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Explanation:

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 5 women before demand of 6th women = 5 ×300 =1500
Total amount paid to 6 women after demand of 6th women =350×6 = 2100
Marginal cost=2100-1500 =600.