Question

Your employer has asked you to start working overtime and has offered to pay $18 per hour for every hour you work beyond forty hours a week. The wage rate for each of the first forty hours will continue to be the usual $15 per hour.
In terms of dollars, what is the marginal benefit of working each hour of overtime?

A) zero B) $3.00 C) $15.00 D) $18.00

Answer 1

Answer:

D) $18.00

Explanation:

The marginal benefit of working each hour of overtime is the benefit that you can get after you have received what you have already expected.

As we know the rate of $15 per hour for the first forty hours. If you work over time, you can receive an extra $18 per hour.