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Assume that the government draws from the ranks of the unemployed to build the Western Sydney airport. They hire 800 workers for 1500 hours per

Assume that the government draws from the ranks of the unemployed to build the Western Sydney airport. They hire 800 workers for 1500 hours per year and the project takes two years to complete. 100 workers were previously unemployed. The minimum wage is $18. The reservation wage, the minimum wage that anyone would accept to work, is $10 and unemployed workers are distributed along the labour supply curve evenly from the reservation wage to the minimum wage. What is the direct expenditure on labour? What is the true opportunity cost of hiring labour?

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