Question

b. Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, what is the current weekly wage rate in the labor market?

Answer 1

Answer:

The current weekly wage rate in the labor market is:

$453.20

Explanation:

a) Data and Calculations:

The average hourly earnings of all employees in the United States stands at 11.33 U.S. dollars.

For 8 hours a day, this will translate to $90.64 ($11.33 * 8)

For 5 days a week, the wage rate will be $453.20 ($90.64 * 5) or ($11.33 * 40).

b) The above rate is for wage workers, who are usually paid per day or per week.  For salaried workers, the rate will be much higher and with some ranges, since salaries are not based on the factor of hourly or weekly rates.