Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please see below, I don't think my answers are correct that I have filled in. Suppose that lowskilled workers employed in clearing woodland can each

Please see below, I don't think my answers are correct that I have filled in.

image text in transcribed
Suppose that lowskilled 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 $1,200 in revenue. Each worker's equipment costs the worker's employer $180 per month to rent and each worker toils 40 hours per week for 4 weeks each month. Instructions: In part 6, enter your answer as a whole number. In parts be, round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign H in front ofthose numbers. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month? ME b. How much revenue per hour does each worker bring in? \"E c. If the minimum wage is $12.45, by how much will the revenue per hour in part b differ from the minimum wage? $- d. Consider the employer's total costs, which include the equipment costs as well as a normal profit of $50 per acre. If the rm pays workers the minimum wage of $12.45 per hour, what will the firm's economic profit or loss be per acre? (Note: Use a negative sign if you are entering a loss.) The firm's per acre will be $ . e. At what value would the minimum wage have to be set so that the rm makes zero economic prot from employing an additional low-skilled worker to clear woodland? $l

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Crashed How A Decade Of Financial Crises Changed The World

Authors: Adam Tooze

1st Edition

0143110357, 9780143110354

More Books

Students also viewed these Economics questions

Question

Does your strategic intent lay out the priorities?

Answered: 1 week ago