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 $1,300 in revenue. Each worker's equipment costs the worker's employer $235 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. 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 $13.20, by how much will the revenue per hour in part b differ from the minimum wage?
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 $1,300 in revenue. Each worker's equipment costs the worker's employer $235 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. 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 $13.20, by how much will the revenue per hour in part b differ from the minimum wage?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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