Pat works for a landscape contractor,generating gross revenues of $50 per hour.Non-labor variable costs total $10 per hour.Pat loves to garden,and would be willing to work for $15 per hour.Assume that the labor market is perfectly competitive.
For each hour that Pat works,the landscape company's net benefits are

Question

Quizplus · Accepted Answer

The net benefits for the company are calculated as the gross revenues ($50) minus the non-labor variable costs ($10) and Pat's wage. Therefore, the net benefit is $40 minus Pat's wage.

Pat Works for a Landscape Contractor,generating Gross Revenues of $50