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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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