This topic contains a solution. Click here to go to the answer

Author Question: The above table shows the total product schedule for Hair Today, a hair styling salon. a) What is ... (Read 162 times)

kodithompson

  • Hero Member
  • *****
  • Posts: 566
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
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 :)


steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

For a complete list of videos, visit our video library