Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if they are each equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1000 in revenue. Each worker’s equipment costs the worker’s employer $150 per month to rent, and each worker toils 40 hours per week for four weeks each month.

a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?

Instructions: Enter only whole numbers for your answer.

$

b. How much revenue per hour does each worker bring in?

Instructions: Round your answer to two decimal places.

$

c. If the minimum wage were $6.20, would the revenue per hour in part b exceed the minimum wage? Choose:
No or Yes

a. $1,000

b. $6.25 per hour

c. Yes

Explanation:

The computation is shown below:

a. The marginal revenue product of hiring low skilled worker is equal to the clearing one in revenue i.e $1,000 as it deals with the additional revenue arise from selling additional units

b. The revenue per hour each worker brings is

= Marginal revenue ÷ Total number of hours for four weeks

= $1,000 ÷ 40 hours × 4

= $1,000 ÷ 160 hours

= $6.25 per hour

c. Since the minimum wage is $6.20

And, the revenue per hour is $6.25 so it exceeded the minimum wage rate by $0.05 taking a difference

answer; i believe the correct answer is (a) purchase of treasury stock;

explore some of these tourist attractions

the metropolitan museum of art. source: anton_ivanov / shutterstock.

central park. source: gagliardiphotography / shutterstock.

national 9/11 memorial and museum.

empire state building.

statue of liberty.

the museum of modern art (moma)

rockefeller center.

brooklyn bridge.

explanation: