Answer to Question #100043 in Microeconomics for Meling C

Question

1. Why do underwater welders make more money than people who feed gorillas at a zoo? Use two graphs to assist your answer.

2. What is the marginal revenue product of labor? How could an economist use this concept to evaluate the worth of a hairdresser? Could it be used to evaluate the worth of a preacher at a church? Why, or why not?

3. When Bob Griese played football for the Miami Dolphins, he was underpaid every year of his career.Why?

4. Where do nonpecuniary wages enter into the earnings of lifeguards, nature photographers, and military snipers?

Answer 1

1. Underwater welders need to have specific skills, and their work is much more complicated, so the supply of such labor is small, that's why they make more money than people who feed gorillas at a zoo.

2. The marginal revenue product of labor (MRPL) is the additional amount of revenue a firm can generate by hiring one additional employee.  An economist can use this concept to evaluate how much revenue creates one additional hairdresser, which can be stated as the worth of a hairdresser. But it couldn't be used to evaluate the worth of a preacher at a church, because he doesn't produce any output, and his services can't be measured using MRPL.

3. When Bob Griese played football for the Miami Dolphins, he was underpaid every year of his career, because he was one of the best players, but he couldn't earn more than it was possible in the Miami Dolphins.

4. Non-pecuniary wages are wages in a form other than money (e.g., health insurance premiums; vehicle; clothing; or rent/housing). They enter into the earnings of lifeguards, nature photographers, and military snipers, if they are wounded or damaged.