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A bicycle factory pays its workers a standard hourly wage for the first 40 hours per week and a 50% higher 'overtime' wage for any additional hours. If the factory decides to increase its weekly production by having its existing workforce work more hours, the variable cost per bicycle will remain constant.
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Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ
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A bicycle factory pays its workers a standard hourly wage for the first 40 hours per week and a 50% higher 'overtime' wage for any additional hours. If the factory decides to increase its weekly production by having its existing workforce work more hours, the variable cost per bicycle will remain constant.
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