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a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month? o. How much revenue per hour does each worker bring in? $ . If the minimum wage is $14.30, by how much will the revenue per hour in part b differ from the minimum wage?

a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month? o. How much revenue per hour does each worker bring in? $ . If the minimum wage is $14.30, by how much will the revenue per hour in part b differ from the minimum wage?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A,B, and C

Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if each is equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1,500 in revenue. Each worker's equipment costs the worker's employer $225 per month to rent and each worker toils 40 hours per week for 4 weeks each month. Instructions: In part a, enter your answer as a whole number. In parts b-e, round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month? $ b. How much revenue per hour does each worker bring in? $ c. If the minimum wage is $14.30, by how much will the revenue per hour in part b differ from the minimum wage? d. Consider the employer's total costs, which include the equipment costs as well as a normal profit of $50 per acre. If the firm pays workers the minimum wage of $14.30 per hour, what will the firm's economic profit or loss be per acre? (Note: Use a negative sign if you are entering a loss.) The firm's (Click to select) v per acre will be $ e. At what value would the minimum wage have to be set so that the firm makes zero economic profit from employing an additional low-skilled worker to clear woodland? $ %24
Transcribed Image Text:Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if each is equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1,500 in revenue. Each worker's equipment costs the worker's employer $225 per month to rent and each worker toils 40 hours per week for 4 weeks each month. Instructions: In part a, enter your answer as a whole number. In parts b-e, round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month? $ b. How much revenue per hour does each worker bring in? $ c. If the minimum wage is $14.30, by how much will the revenue per hour in part b differ from the minimum wage? d. Consider the employer's total costs, which include the equipment costs as well as a normal profit of $50 per acre. If the firm pays workers the minimum wage of $14.30 per hour, what will the firm's economic profit or loss be per acre? (Note: Use a negative sign if you are entering a loss.) The firm's (Click to select) v per acre will be $ e. At what value would the minimum wage have to be set so that the firm makes zero economic profit from employing an additional low-skilled worker to clear woodland? $ %24
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