« previous next »

Author Question: Joey notices that by employing an additional hairdresser, he will be able to increase the number of ... (Read 16 times)

809779

  • Hero Member
  • *****
  • Posts: 579
on: Jul 1, 2018
Joey notices that by employing an additional hairdresser, he will be able to increase the number of haircuts in his salon by 15 haircuts per day. The daily salary he will need to pay the hairdresser is 200.
 
  How much is the cost for an additional haircut? Describe the general relationship between the marginal product and marginal cost curves.

Question 2

All of the following are conditions which are favorable to the formation of cartels except
 
  A) the existence of a small number of firms.
  B) geographic proximity of firms.
  C) homogeneity of the product.
  D) easy entry into the industry.


Ahnyah

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jul 1, 2018
Answer to Question 1

Since employing an additional hairdresser (L) increases haircuts (Q) by 15, this is saying that MPL = 15. The wage (w) is 200. The marginal cost is the added cost of producing one more haircut. If one hairdresser can produce 15, Joey would need to hire 1/15 (or 1/MPL) to produce just one more haircut. The cost of 1/15 of a hairdresser is 1/15 of the wage, or
200/15 = 13.33. This is demonstrating the general relationship between the MC and MP curves. Specifically, MC = w/MP. This implies the shape of the MC is inversely related to the shape of the MP.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

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?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
An additional extension may be necessary to hoist a truck or van equipped with running boards to ... An additional extension may be necessary to hoist a truck or van equipped with running boards to ...
The distribution of cones and rods over the human retina. The figure illustrates the number of cones ... The distribution of cones and rods over the human retina. The figure illustrates the number of cones ...
Effect of an Increase in R&D in the Follower Country on the Steady State Effect of an Increase in R&D in the Follower Country on the Steady State
The minimum number of moles of oxygen needed to completely consume 4 moles of C3H8O is ... The minimum number of moles of oxygen needed to completely consume 4 moles of C3H8O is ...
The relationship between the number of stem cell divisions in the lifetime of a given tissue and the The relationship between the number of stem cell divisions in the lifetime of a given tissue and the
Video: Effect of blood chemistry - stimuli, hyperventilation response and hypoventilation response

For a complete list of videos, visit our video library