**Wage Rates and Labor Market Equilibrium**The table below displays the relationship between wage rates and the supply and demand for labor in millions of workers:| Wage Rate (dollars per hour) | Labor Supplied (millions of workers) | Labor Demanded (millions of workers) ||------------------------------|--------------------------------------|--------------------------------------|| 11 | 6 | 4 || 10 | 5 | 5 || 9 | 4 | 6 || 8 | 3 | 7 || 7 | 2 | 8 |**Question 7:** In the table above, what is the equilibrium wage rate in an unregulated market?- ○ $11.00 per hour- ○ $10.00 per hour- ○ $8.00 per hour- ○ $9.00 per hour**Explanation of the Table:**- The table compares different hourly wage rates with the corresponding amounts of labor supplied and demanded.- The equilibrium wage rate occurs where the quantity of labor supplied equals the quantity of labor demanded. Here, this condition occurs at a wage rate where both labor supplied and demanded are 5 million workers.- Thus, the equilibrium wage rate in this unregulated market is $10.00 per hour.

In an unregulated labor market, wage rate is determined by the market forces to maximize the market…

Answered: Labor Wage rate (dollars per hour)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if they are each equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1000 in revenue. Each worker’s equipment costs the worker’s employer $150 per month to rent, and each worker toils 40 hours per week for four weeks each month.a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?Instructions: Enter a whole number for your answer.$ b. How much revenue per hour does each worker bring in?Instructions: Round your answer to two decimal places.$ c. If the minimum wage were $6.20, would the revenue per hour in part b exceed the minimum wage? If so, by how much per hour?Instructions: Round your answer to two decimal places. $ per hourd. Now consider the employer’s total costs. These include the equipment costs as well as a normal profit of $50 per acre. If the firm pays workers the minimum wage of $6.20 per…
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Labor Wage rate (dollars per hour) supplied (millions of workers) 6. Labor demanded (millions of workers 11 4 10 9. 4 8 3 7 7 8. 7. In the table above, what is the equilibrium wage rate in an unregulated market? $11.00 per hour $10.00 per hour $8.00 per hour O $9.00 per hour