Answer to Question #296837 in Microeconomics for mat

Question

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

$Total Productive Hours=24-14=10hrs$

$Total Wage=100+20=120$ $

$Hourly Wage Rate=\frac{120}{10}=12$ $ per hour.