Question

Now 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 $6.20 per hour, what will the firm’s economic profit or loss be per acre?

Answer 1

The firm’s (choose one): loss per acre will be $ 192

Step-by-step explanation:

Instructions: Enter only whole numbers for your answer. Enter a positive number after identifying profit or loss.

Wage to workers = 160 hrs x $6.20

= $992

Equiptment costs = $150 per month

Normal profit required = $50

Total cost = $992+ $150 +$ 50

= $1192

Total revenue per month = $1000

Profit = Total revenue per month - Total cost

= $1192-$1000

= -$192