This paper circulates around the core theme of local firm hires $150 of unskilled labour at the minimum wage and constructs a walking track together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
A local firm hires $150 of unskilled labour at the minimum wage and constructs a walking track, for 1 answer below » A local firm hires $150 of unskilled labour at the minimum wage and constructs a walking track, for which it is paid $180 by the State Government. The firm incurs no other cost, apart from the wage bill, in constructing the track. The government is to charge a fee to users of the track, and the present value of the fees paid is estimated to be $100. Con- sumers place a net present value (net of the fees and any other costs incurred) of $50 on the track’s services. The labour employed to View complete question » A local firm hires $150 of unskilled labour at the minimum wage and constructs a walking track, for which it is paid $180 by the State Government. The firm incurs no other cost, apart from the wage bill, in constructing the track. The government is to charge a fee to users of the track, and the present value of the fees paid is estimated to be $100. Con- sumers place a net present value (net of the fees and any other costs incurred) of $50 on the track’s services. The labour employed to construct the track would otherwise be unem- ployed, and the value of its non-market activity is estimated to be $50. calculate the net benefit of the project to each member of the referent group: the firm consumers labour the government; using the appropriate shadow-price of labour, calculate the efficiency net benefit of the project. View less » Aug 21 2015 03:37 PM