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$275 per month to rent and each worker toils 40 hours per week for 4 weeks each month.Instructions: In part a, enter your answer as a whole number. In parts b-e, round your answers to 2 decimal places. If you are enteringany negative numbers be sure to include a negative sign (-) in front of those numbers.a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?2$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 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?%24 After a campus pub increases its output from 3 kegs of beer per day to 11 kegs of beer per day, its total resource cost increases from$135 per day to $550 per day.Instructions: Enter your answers rounded to two decimal places.a. What is the marginal resource cost per day of the additional kegs?$ 51.87b. Assuming the pub is using its resources in a profit-maximizing way, what is the marginal revenue product per day of the additionalkegs?$ 56.25

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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 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 $14.30, by how much will the revenue per hour in part b differ from the minimum wage? 2$

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 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 $14.30, by how much will the revenue per hour in part b differ from the minimum wage? 2$

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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70 60 50 40 30 20 10 0 $ 0 10 20 30 40 LS MFC VMP MRP 444L 50 01. Assuming the price of the product is $2.00, what is the Marginal Physical Product (MPP) of Labor of the 45-th unit of labor? (a) 10 (b) 20 O (c) 30
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Musashi Cutter runs a surfing school on the North Shore of Oahu. He has two inputs: surfboards, which he rents from a local shop for $10 per day, and surfing instructors, whom he hires for $40 per day. Musashi has figured out that the marginal revenue product (MRP) of the last instructor hired is $400, and the MRP of the last board used is $300. Which of the following statements is correct? - Musashi will optimize his input combination if he employs more instructors and uses fewer surfboards - Musashi will optimize his input combination if he employs fewer instructors and use more surfboards - Musashi currently employs the optimal combination of surfboards and instructors
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Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5 per day. The company also rents space where orders are prepared. Rent costs $50 per day. To make the deliveries, the business also rents two delivery cars that cost $10 each per day. The costs of ingredients for preparing different numbers of meals are provided in the table below. Maria also has to hire between 0 and 10 workers (depending on the number of meals she chooses to make) to buy ingredients, prepare meals, and deliver the orders. She will pay each employee $120 per day. The first two columns of the table below show how many meals different number of workers can prepare and deliver. Price per meal $50 Workers (Labor L) 0 1 2 3 4 5 6 7 8 9 10 Meals (Output Q) ol- 30 42 52 60 67 73 79 85 90 95 MPL FC Cost of ingredients $10 $75 $100 $121 $138 $152…
Explain Law of Diminishing Marginal Returns using the following example. The weekly number of repairs produced by a computer repair shop depends upon numberof workers.No of Workers No of Repairs1 02 83 204 355 456 527 578 60
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(b) A garment factory’s production function is provided in the table.The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above. I would like questions i,ii,iii answered please.
The table below shows the maximum output levels for Here and There. Cloth Computers Here 110 or 60 There 70 or 120 a. What is the cost of 1 unit of cloth and a computer in Here? Round your answers below to 2 decimal places. 1 cloth computers. 1 computer units of cloth. b. What is the cost of 1 unit of cloth and a computer in There? Round your answers below to 2 decimal places. 1 cloth = computers. 1 computer = units of cloth. c. In which product does each country have a comparative advantage? Here: (Click to select) v There: (Click to select) v. d. What is the range of feasible terms of trade between the two countries? Round your answers below to 2 decimal places. Feasible terms of trade computers to between 1 unit of cloth to units of cloth. between 1 computer 8 of 33 Next > < Prev
Workers are in need of a tool at a rate of 5 per hour. The total time that workers spend when picking up the required tool from the tool crib is considered wasted. Workers are paid $36 per hour. The clerk at the tool crib can serve up to fifteen workers per hour and the clerk is paid $10 per hour. (a) What is the cost-minimal number of clerks? Show all work. (b) Suppose that the firm has the opportunity to hire a different clerk who can serve up to 25 customers per hour. However, the clerk demands $18 per hour. Would the firm consider hiring this individual?
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