Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 13 - Wage Determination - Problems - Page 285: 4a

Answer

$\$1,000$ (per month / per worker).

Work Step by Step

1 worker clears 1 acre/month → revenue = $\$1,000$/acre. Equipment rental cost to employer = $\$150$ per worker per month. Work time = $40$ hours/week × $4$ weeks $= 160$ hours/month. Marginal revenue product (MRP) of one worker for one month MRP = value of the extra output produced = $\$1,000$ (per month / per worker).
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