The marginal revenue product of hiring one low-skilled worker.

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Answer 1

Question

Chapter 17, Problem 4P

Sub part (a):

To determine

The marginal revenue product of hiring one low-skilled worker.

Sub part (b):

To determine

The Revenue per hour.

Sub part (c):

To determine

By how much the minimum wage and the actual wage differs.

Sub part (d):

To determine

Economic profit or loss of the firm.

Sub part (e):

To determine

What should happen to wages to bring loss to zero.

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The table below provides the total revenues and costs for a small landscaping company in a recent year. Total Revenues ($) 250,000 Total Costs ($) - wages and salaries 100,000 -risk-free return of 2% on owner's capital of $25,000 500 -interest on bank loan 1,000 - cost of supplies 27,000 - depreciation of capital equipment 8,000 - additional wages the owner could have earned in next best alternative 30,000 -risk premium of 4% on owner's capital of $25,000 1,000 The economic profits for this firm are ○ A. $83,000. B. $82,500. OC. $114,000. OD. $83,500. ○ E. $112,500.

Output TFC ($) TVC ($) TC ($) (Q) 2 100 104 204 3 100 203 303 4 100 300 400 5 100 405 505 6 100 512 612 7 100 621 721 Given the information about short-run costs in the table above, we can conclude that the firm will minimize the average total cost of production when Q = (Round your response to the nearest whole number.)

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. Assume that the wage per unit of labour is $20 and the cost of the capital is $100. Labour per unit of time 0 1 Total Output 0 25 T 2 3 4 5 75 137 212 267 The marginal product of labour is at its maximum when the firm changes the amount of labour hired from ○ A. 0 to 1 unit. ○ B. 3 to 4 units. OC. 2 to 3 units. OD. 1 to 2 units. ○ E. 4 to 5 units.

Answer 2

Question

Chapter 17, Problem 4P

Sub part (a):

To determine

The marginal revenue product of hiring one low-skilled worker.

Sub part (b):

To determine

The Revenue per hour.

Sub part (c):

To determine

By how much the minimum wage and the actual wage differs.

Sub part (d):

To determine

Economic profit or loss of the firm.

Sub part (e):

To determine

What should happen to wages to bring loss to zero.

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Answer 3

Question

Chapter 17, Problem 4P

Sub part (a):

To determine

The marginal revenue product of hiring one low-skilled worker.

Sub part (b):

To determine

The Revenue per hour.

Sub part (c):

To determine

By how much the minimum wage and the actual wage differs.

Sub part (d):

To determine

Economic profit or loss of the firm.

Sub part (e):

To determine

What should happen to wages to bring loss to zero.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 17, Problem 4P

Sub part (a):

To determine

The marginal revenue product of hiring one low-skilled worker.

Sub part (b):

To determine

The Revenue per hour.

Sub part (c):

To determine

By how much the minimum wage and the actual wage differs.

Sub part (d):

To determine

Economic profit or loss of the firm.

Sub part (e):

To determine

What should happen to wages to bring loss to zero.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 17, Problem 4P

Sub part (a):

To determine

The marginal revenue product of hiring one low-skilled worker.

Sub part (b):

To determine

The Revenue per hour.

Sub part (c):

To determine

By how much the minimum wage and the actual wage differs.

Sub part (d):

To determine

Economic profit or loss of the firm.

Sub part (e):

To determine

What should happen to wages to bring loss to zero.

Answer 6

Chapter 17, Problem 4P

Sub part (a):

To determine

The marginal revenue product of hiring one low-skilled worker.

Answer 7

Chapter 17, Problem 4P

Sub part (a):

To determine

The marginal revenue product of hiring one low-skilled worker.

Answer 8

Sub part (b):

To determine

The Revenue per hour.

Answer 9

Sub part (b):

To determine

The Revenue per hour.

Answer 10

Sub part (c):

To determine

By how much the minimum wage and the actual wage differs.

Answer 11

Sub part (c):

To determine

By how much the minimum wage and the actual wage differs.

Answer 12

Sub part (d):

To determine

Economic profit or loss of the firm.

Answer 13

Sub part (d):

To determine

Economic profit or loss of the firm.

Answer 14

Sub part (e):

To determine

What should happen to wages to bring loss to zero.

Answer 15

Sub part (e):

To determine

What should happen to wages to bring loss to zero.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 17.3 - Prob. 1QQ Ch. 17.3 - Prob. 2QQ Ch. 17.3 - Prob. 3QQ Ch. 17.3 - Prob. 4QQ Ch. 17.A - Prob. 1ADQ Ch. 17.A - Prob. 2ADQ Ch. 17.A - Prob. 3ADQ Ch. 17.A - Prob. 4ADQ Ch. 17.A - Prob. 1ARQ Ch. 17.A - Prob. 2ARQ

The marginal revenue product of hiring one low-skilled worker.

Solution Summary: The author explains how the marginal revenue product of hiring one low-skilled worker for clearing one acre is 1,000.

The marginal revenue product of hiring one low-skilled worker.

The Revenue per hour.

By how much the minimum wage and the actual wage differs.

Economic profit or loss of the firm.

What should happen to wages to bring loss to zero.

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Chapter 17 Solutions