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 286: 4e

Answer

$\$5.00$/hour

Work Step by Step

To have profit zero set Total cost = Revenue: $𝑤 \times 160 + 150 + 50 = 1,000$ So $𝑤 \times 160 =800$ $w =\frac{800}{160}$ $w=5$ So the wage would have to be $\$5.00$/hour for the firm to just break even (zero economic profit) on that additional worker.
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