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 8-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. The MP of the second barber is
A. 42 haircuts.
B. $240.
C. 18 haircuts.
D. $108.
Answer: C
You might also like to view...
The concept of diminishing marginal utility:
A. explains why individuals rarely maximize their total utility. B. is the change in total utility that comes from consuming one additional unit of a good or service. C. is the principle that the additional utility gained from consuming successive units of a good or service tends to be smaller than the utility gained from the previous unit. D. is the principle that the additional utility gained from consuming different bundles of goods and services tend to be smaller than the utility gained from consuming just one bundle of goods and services.
If there is no single strategy that is best regardless of other players’ behavior:
A. there is no dominant strategy. B. the dominant strategy will be to defect. C. a noncooperative equilibrium is the only possible outcome. D. the game is called a Prisoners’ dilemma.
On a production possibilities curve diagram, greater entrepreneurship:
a. causes the curve to shift outward. b. keeps the economy on the curve. c. prevents movement along the curve. d. keeps the economy at the corners of the curve.
Suppose a price ceiling is set by the government below the market equilibrium price. Which of the following will result?
a. The demand curve will shift to the left. b. The quantity demanded will exceed the quantity supplied. c. The quantity supplied will exceed the quantity demanded. d. There will be a surplus.