Question

Given the information about the production rates and output per day, calculate the wage rate per unit.

A) Rs. 0.09
B) Rs. 0.12
C) Rs. 5.40
D) Rs. 60.00

Answer 1

To calculate the wage rate per unit, we need to determine the cost of producing each unit of output. The correct answer is Option C) Rs. 5.40.

Step-by-step explanation:

To calculate the wage rate per unit, we need to determine the cost of producing each unit of output. In this case, we have a table that shows the quantity of labor demanded and supplied at different wage rates. From this table, we can see that at a wage rate of $10/hr, 1,200 units of labor are supplied. Since the cost of producing each unit of output is equal to the wage rate, the wage rate per unit is $10. Therefore, the correct answer is Option C) Rs. 5.40.