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

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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