Table 17-3
-Refer to Table 17-3.The Hair Cuttery,a new hair salon,is ready to start hiring.The table above shows the relationship between the number of hairdressers the firm hires and the quantity of haircuts it produces.
a.Suppose the price of haircuts is $8.Complete the table by filling in the values for marginal product and marginal revenue product.
b.The Hair Cuttery is an input price-taker.Suppose the wage paid to hairdressers is $40 per day.What is the profit-maximizing number of hairdressers?
c.Suppose the wage rate rises to $60 per day.
(i)What happens to the firm's demand curve for hairdressers?
(ii)What happens to the profit-maximizing quantity of hairdressers?
d.Suppose the wage rate is $40 per day and the price of haircuts is now $10.
(i)What happens to the firm's demand curve for hairdressers?
(ii)What happens to the profit-maximizing quantity of hairdressers?
Correct Answer:
Verified
b.The profit-maximizing number of ha...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q56: Figure 17-2 Q89: An increase in the supply of capital, Q91: Explain how the market for opticians is Q102: Which of the following helps to explain Q104: Which of the following statements is true? Q107: In general, the labor supply curve Q112: The wage rate is the opportunity cost Q120: The typical labor supply curve is upward Q128: Leisure is Q136: Along an upward-sloping labor supply curve, as
A)As
A)slopes downward
A)an inferior good.
B)a complementary good to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents