Asked by Yasmin Neves on Jun 08, 2024
Verified
Harry owns a barbershop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-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) $240.
B) $108.
C) 18 haircuts.
D) 42 haircuts.
MP
Represents marginal productivity, which is the additional output derived from the use of one more unit of a variable input, holding all other inputs constant.
Barbershop
A place of business where people, typically men, go to get haircuts and other grooming services such as shaves.
Haircuts
The process of trimming or styling hair to maintain or change one’s appearance, often performed by professionals in salons.
- Learn about the theory and importance of marginal product (MP) and marginal revenue product (MRP) in the allocation of resources.
Verified Answer
BR
Brianna roblesJun 12, 2024
Final Answer :
C
Explanation :
The Marginal Product (MP) of the second barber is the additional number of haircuts provided by hiring the second barber, which is the difference between the total haircuts with two barbers (42) and the total haircuts with one barber (24), resulting in 18 additional haircuts.
Learning Objectives
- Learn about the theory and importance of marginal product (MP) and marginal revenue product (MRP) in the allocation of resources.