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?
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 9TY
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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 $1,300 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?.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01bdf369-b0b5-4a47-b71e-c6fae5f9dcb6%2F4b0e37f7-5040-48d5-b079-080aac4d9d3d%2Fwjel91w_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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?.
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