Barry's Brewpub is considering hiring more brewmasters.A pint of brew sells for $3.The market wage of a brewmaster is $150 per day.Assuming that the market for beer is perfectly competitive,Barry's Brewpub will hire another brewmaster only if Barry believes the new brewmaster will:
A)produce the same number of pints per day as the last brewmaster hired.
B)produce 50 or more pints per day.
C)raise average production to 50 or more pints per day.
D)increase the marginal product by $150 per day.

Question

Quizplus · Accepted Answer

Barry's Brewpub will hire another brewmaster if the marginal product of the new brewmaster is greater than or equal to their market wage ($150). Since a pint of beer sells for $3, producing 50 or more pints per day would generate a marginal product of $150 or more ($3 x 50 = $150). Therefore, option B is the most appropriate choice.

Barry's Brewpub Is Considering Hiring More Brewmasters