Which of the following can be the defini

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:

Which of the following can be the definition of wage rate?

Options:

Average cost of hiring one more unit of labour

Additional cost of hiring one more unit of technology

Extra cost of hiring one more unit of labour

Marginal cost of hiring one more unit of technology

Correct Answer:

Extra cost of hiring one more unit of labour

Explanation:

The correct answer is Option 3: Extra cost of hiring one more unit of labour

Wage rate refers to the amount a firm pays to hire an additional unit of labor (worker).
It represents the cost per worker, which is the extra (marginal) cost incurred when employing one more unit of labor.