Answer the question on the basis of the following information: Harry owns a barber shop and charges $6 per haircut.By hiring one barber at $10 per hour,the shop can provide 24 haircuts per eight-hour day.By hiring a second barber at the same wage rate,the shop can now provide a total of 42 haircuts per day. Refer to the given information.The MP of the second barber is:
A) $240.
B) $108.
C) 18 haircuts.
D) 42 haircuts.

Question

Quizplus · Accepted Answer

To calculate the marginal product of the second barber, we need to find out how much additional output we get by hiring him.

Initially with one barber, the shop produces 24 haircuts per day. After hiring the second barber, the total output increases to 42 haircuts per day.

Therefore, the marginal product of the second barber is:

Marginal product = Total output with 2 barbers - Total output with 1 barber
= 42 - 24
= 18 haircuts

So, the correct answer is C, which is 18 haircuts.

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