This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The above table shows the total product schedule for Hair Today, a hair styling salon. a) What is ... (Read 143 times)

kodithompson

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
The above table shows the total product schedule for Hair Today, a hair styling salon.
 
  a) What is the first worker's marginal product? The second worker? The third worker? The fourth worker? The fifth worker? b) Over what range of workers is there increasing marginal returns? Over what range is there decreasing marginal returns?

Question 2

Explain why a monopsony's marginal cost of labor is greater than the wage rate.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

flannelavenger

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 29, 2018
Answer to Question 1

a) The first worker's marginal product is 10 hair stylings. The second worker's marginal product is 15 hair stylings. The third worker's marginal product is 20 hair stylings. The fourth worker's marginal product is 15 hair stylings. The fifth worker's marginal product is 10 hair stylings.
b) There are increasing marginal returns for the first 3 workers. After the third worker, there are decreasing marginal returns.

Answer to Question 2

If the monopsony wants to hire more labor, it must offer a higher wage to the additional worker PLUS it must offer that same higher wage to all workers that were previously hired at a lower wage.


kodithompson

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

matt95

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Chimpanzee without any hair (mutation) Chimpanzee without any hair (mutation)
Genetic control of root hair development. Genetic control of root hair development.
This Native American depiction of the Sand Creek Massacre, painted on a buffalo hide, shows the Indi This Native American depiction of the Sand Creek Massacre, painted on a buffalo hide, shows the Indi
Checklist for Choosing a Massage Table Cont. Checklist for Choosing a Massage Table Cont.
Short Table of Laplace Tranforms Short Table of Laplace Tranforms
Major bone (tan) and cartilage (light blue) elements of the human skeleton. Inset shows regions of v Major bone (tan) and cartilage (light blue) elements of the human skeleton. Inset shows regions of v
Video: Hormonal regulation of pregnancy - weeks 17 through 38

For a complete list of videos, visit our video library