Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if they are each equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1500 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. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month? Instructions: Enter a whole number for your answer. 24 b. How much revenue per hour does each worker bring in? Instructions: Round your answer to two decimal places. $ c. If the minimum wage were $9.28, would the revenue per hour in part b exceed the minimum wage? (Click to select) v If so, by how much per hour? Instructions: Round your answer to two decimal places. per hour d. Now consider the employer's total costs. These include the equipment costs as well as a normal profit of $50 per acre. If the firm pays workers the minimum wage of $9.28 per hour, what will the firm's economic profit or loss be per acre? Instructions: Enter a whole number for your answer. Enter profit or loss as a positive number. The firm's (Click to select) v per acre will be $ e. At what value would the minimum wage have to be set so that the firm would make zero economic profit from employing an additional low-skilled worker to clear woodland? Instructions: Enter a whole number for vouur answer
Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if they are each equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1500 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. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month? Instructions: Enter a whole number for your answer. 24 b. How much revenue per hour does each worker bring in? Instructions: Round your answer to two decimal places. $ c. If the minimum wage were $9.28, would the revenue per hour in part b exceed the minimum wage? (Click to select) v If so, by how much per hour? Instructions: Round your answer to two decimal places. per hour d. Now consider the employer's total costs. These include the equipment costs as well as a normal profit of $50 per acre. If the firm pays workers the minimum wage of $9.28 per hour, what will the firm's economic profit or loss be per acre? Instructions: Enter a whole number for your answer. Enter profit or loss as a positive number. The firm's (Click to select) v per acre will be $ e. At what value would the minimum wage have to be set so that the firm would make zero economic profit from employing an additional low-skilled worker to clear woodland? Instructions: Enter a whole number for vouur answer
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if they are each equipped with a
shovel, a machete, and a chainsaw. Clearing one acre brings in $1500 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.
a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?
Instructions: Enter a whole number for your answer.
$4
b. How much revenue per hour does each worker bring in?
Instructions: Round your answer to two decimal places.
c. If the minimum wage were $9.28, would the revenue per hour in part b exceed the minimum wage? (Click to select) v
If so, by how much per hour?
Instructions: Round your answer to two decimal places.
%24
per hour
d. Now consider the employer's total costs. These include the equipment costs as well as a normal profit of $50 per acre. If the firm
pays workers the minimum wage of $9.28 per hour, what will the firm's economic profit or loss be per acre?
Instructions: Enter a whole number for your answer. Enter profit or loss as a positive number.
The firm's (Click to select) V per acre will be $
e. At what value would the minimum wage have to be set so that the firm would make zero economic profit from employing an
additional low-skilled worker to clear woodland?
Instructions: Enter a whole number for vouur answer
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