Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if each is equipped with a shov
el, a machete, and a chainsaw. Clearing one acre brings in $1,400 in revenue. Each worker’s equipment costs the worker’s employer $210 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.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 were $8.70, would the revenue per hour in part b exceed the minimum wage?A. Yes B. NoIf so, by how much per hour?d. 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 $8.70 per hour, what will the firm’s economic profit or loss be per acre?The firm's (Click to select) (loss profit) 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?
1 answer:
You might be interested in
Answer:
Total cost for 316 returns $3,962
Total cost for 408 returns $4,974
Total cost for 524 returns $6,250
Explanation:
The total cost incurred by Pharoah with the Mega Tax software is given by the fixed cost of $486, referring to the annual fees, added to the cost per tax return of $11 multiplied by the volume of returns filed (n):
i. if 316 returns are filed? (n = 316)
ii. If 408 returns are filed? (n = 408)
iii. If 524 returns are filed? (n = 524)
Total cost for 316 returns $3,962
Total cost for 408 returns $4,974
Total cost for 524 returns $6,250