Suppose the marginal tax rate on income is 20% on the first $50,000 of income and then 40% on anything above $50,000. An individual currently earning $60,000 per year has the opportunity to working overtime and earning an extra $10,000 of income per year. Calculate marginal benefit of working overtime?

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The marginal benefit of working overtime can be calculated by determining the additional aftertax in... View the full answer