The table below shows the short-run production function for Briana's Brick Shop. Number of Brick Masons Total Product per Hour 1 9 19 3 30 4 42 52 6. 61 7 63 8 60 (a) After which brick mason do diminishing marginal returns begin for Briana's Brick Shop? Explain using numbers. (b) Assume Briana's Brick Shop sells its bricks in a perfectly competitive market at a price of $6. Calculate the marginal revenue product of the seventh brick mason. Show your work. (c) Briana's Brick Shop hires brick masons in a perfectly competitive labor market for brick masons at a wage rate of $48 per hour, and the market price of bricks remains $6. How many brick masons will Briana's Brick Shop hire to maximize its profit? Explain using marginal analysis.
The table below shows the short-run production function for Briana's Brick Shop. Number of Brick Masons Total Product per Hour 1 9 19 3 30 4 42 52 6. 61 7 63 8 60 (a) After which brick mason do diminishing marginal returns begin for Briana's Brick Shop? Explain using numbers. (b) Assume Briana's Brick Shop sells its bricks in a perfectly competitive market at a price of $6. Calculate the marginal revenue product of the seventh brick mason. Show your work. (c) Briana's Brick Shop hires brick masons in a perfectly competitive labor market for brick masons at a wage rate of $48 per hour, and the market price of bricks remains $6. How many brick masons will Briana's Brick Shop hire to maximize its profit? Explain using marginal analysis.
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 3P
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Question
![09:28 Wed 8 Dec
VPN O 92%
•..
managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A
The table below shows the short-run production function for Briana's Brick Shop.
Number of Brick Masons
Total Product
per Hour
1
9
2
19
30
4
42
52
61
7
63
8
60
(a) After which brick mason do diminishing marginal returns begin for Briana's Brick Shop? Explain using numbers.
(b) Assume Briana's Brick Shop sells its bricks in a perfectly competitive market at a price of $6. Calculate the marginal
revenue product of the seventh brick mason. Show your work.
(c) Briana's Brick Shop hires brick masons in a perfectly competitive labor market for brick masons at a wage rate of $48
per hour, and the market price of bricks remains $6. How many brick masons will Briana's Brick Shop hire to maximize
its profit? Explain using marginal analysis.
(d) Assume brick masons and machines are substitutes in the production of bricks by all brick-making firms in the market.
If machines, a fixed input, become more expensive and Briana’s Brick Shop produces the same quantity of bricks, will
each of the following increase, decrease, or stay the same?
(i) The wage rate Briana's Brick Shop will pay its brick masons. Explain.
(ii) The demand curve for brick masons for Briana's Brick Shop. Explain.
3.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5face7b2-505f-4ae7-bfc4-f1a119979451%2F5bcc1b5e-3f7e-41f2-a415-21f98f0ee559%2Fcage0di_processed.png&w=3840&q=75)
Transcribed Image Text:09:28 Wed 8 Dec
VPN O 92%
•..
managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A
The table below shows the short-run production function for Briana's Brick Shop.
Number of Brick Masons
Total Product
per Hour
1
9
2
19
30
4
42
52
61
7
63
8
60
(a) After which brick mason do diminishing marginal returns begin for Briana's Brick Shop? Explain using numbers.
(b) Assume Briana's Brick Shop sells its bricks in a perfectly competitive market at a price of $6. Calculate the marginal
revenue product of the seventh brick mason. Show your work.
(c) Briana's Brick Shop hires brick masons in a perfectly competitive labor market for brick masons at a wage rate of $48
per hour, and the market price of bricks remains $6. How many brick masons will Briana's Brick Shop hire to maximize
its profit? Explain using marginal analysis.
(d) Assume brick masons and machines are substitutes in the production of bricks by all brick-making firms in the market.
If machines, a fixed input, become more expensive and Briana’s Brick Shop produces the same quantity of bricks, will
each of the following increase, decrease, or stay the same?
(i) The wage rate Briana's Brick Shop will pay its brick masons. Explain.
(ii) The demand curve for brick masons for Briana's Brick Shop. Explain.
3.
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