Asked by logan brockway on Jun 14, 2024
Verified
If a nail salon hires an additional worker, that worker can service 8 additional customers per day. The average nail service fee is $30. The most the salon would be willing to pay that worker is
A) $8 per day.
B) $30 per day.
C) $240 per day.
D) indeterminate with the given information.
Additional Worker
Refers to the incremental human resource added to the workforce, potentially affecting productivity and costs.
Nail Service Fee
A charge for professional nail care services, such as manicures and pedicures, provided by salons or spas.
Nail Salon
A specialized establishment offering services such as manicures, pedicures, and nail art to clients.
- Acquire knowledge on the marginal revenue product (MRP) and its association with the process of hiring.
- Detail the ramifications of perfectly competitive labor and product markets on the marginal revenue product and the selection of personnel for employment.
Verified Answer
AS
Ashley SpencerJun 14, 2024
Final Answer :
C
Explanation :
The salon earns $30 from each additional customer the worker can service. With 8 additional customers, the total additional revenue is $30 * 8 = $240 per day. Therefore, the most the salon would be willing to pay the worker is up to $240 per day, as this is the additional revenue generated by hiring the worker.
Learning Objectives
- Acquire knowledge on the marginal revenue product (MRP) and its association with the process of hiring.
- Detail the ramifications of perfectly competitive labor and product markets on the marginal revenue product and the selection of personnel for employment.