Barry's Brewpub is considering hiring more brew masters (it already employs several).The current market wage for a brew master is $120.The average brew master produces 40 pints of beer per day, but Barry expects the next brew master hired to produce only 20 pints per day.Barry's Brewpub will hire another brew master only if:
A)a pint of brew sells for $3.
B)the new brew master can produce 40 pints.
C)a pint of brew sells for $2.
D)a pint of brew sells for $6 or more.

Question

Quizplus · Accepted Answer

Since the new brew master is expected to produce only 20 pints per day, the cost of production per pint for Barry's Brewpub will be ($120/20) = $6. Therefore, Barry's Brewpub will hire another brew master only if a pint of brew sells for $6 or more, to cover the cost of production and make a profit.

Barry's Brewpub Is Considering Hiring More Brew Masters (It Already