Please help me with d and e 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$275 per month to rent and each worker toils 40 hours per week for 4 weeks each month.Instructions: In part a, enter your answer as a whole number. In parts b-e, round your answers to 2 decimal places. If you are enteringany negative numbers be sure to include a negative sign (-) in front of those numbers.a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?$ 1500b. How much revenue per hour does each worker bring in?$9.38c. If the minimum wage is $14.30, by how much will the revenue per hour in part b differ from the minimum wage?4.93d. Consider the employer's total costs, which include the equipment costs as well as a normal profit of $50 per acre. If the firm paysworkers 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 ifyou are entering a loss.)The firm's lossper 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 additionallow-skilled worker to clear woodland?

d) Firm economic profit = Revenue - Equipment Cost - Profit per Acre - Labor CostFirm economic…

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 loss O 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?

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 loss O 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?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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