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 $1,400 in revenue. Each worker's equipment costs the worker's employer$255 per month to rent and each worker toils 40 hours per week for 4 weeks each month.Instructions: In part a, enter your answer as a whole number. In parts b-e, round your answers to 2 decimal places. If you are enteringany negative numbers be sure to include a negative sign (-) in front of those numbers.a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?$b. How much revenue per hour does each worker bring in?c. If the minimum wage is $13.65, by how much will the revenue per hour in part b differ from the minimum wage?2$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 $13.65 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 lossV per acre will be $e. At what value would the minimum wage have to be set so that the firm makes zero economic profit from employing an additionallow-skilled worker to clear woodland?2$

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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 $1,400 in revenue. Each worker's equipment costs the worker's employer $255 per month to rent and each worker toils 40 hours per week for 4 weeks each month. Instructions: In part a, enter your answer as a whole number. In parts b-e, round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month? 2$ b. How much revenue per hour does each worker bring in? c. If the minimum wage is $13.65, by how much will the revenue per hour in part b differ from the minimum wage? 2$

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 $1,400 in revenue. Each worker's equipment costs the worker's employer $255 per month to rent and each worker toils 40 hours per week for 4 weeks each month. Instructions: In part a, enter your answer as a whole number. In parts b-e, round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month? 2$ b. How much revenue per hour does each worker bring in? c. If the minimum wage is $13.65, by how much will the revenue per hour in part b differ from the minimum wage? 2$

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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