Answer to Question #296988 in Economics of Enterprise for Ateng

Question

7. A worker's total earnings for one day is $100. He received a $20 fixed payment and

consumes 14 hours of leisure. What is the hourly wage rate? Show solutions

Answer 1

SOLUTION

Total earnings = fixed earnings + hourly earnings

Assuming hourly wage rate to be h

100 = 20 + h (24 - 14)

100 = 20 + 10h

100 - 20 = 10h

80 = 10h

8 = h

ANSWER

The hourly wage rate is $8