1. Brenda owns a construction company that employs bricklayers and other skilled tradesmen. Her firmâ€™s MRP...

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Economics

1. Brenda owns a construction company that employs bricklayersand other skilled tradesmen. Her firmâ€™s MRP for bricklayers is$16.50 per hour for each of the first five bricklayers, $15.50 foran sixth brick layer, and $14.75 for a seventh bricklayer. Giventhat she is a price taker when hiring bricklayers, how manybricklayers will she hire if the market equilibrium wage forbricklayers is $15.00 per hour?

2. The market equilibrium wage is currently $15 per hour amongpet groomers. At that wage, 148 pet groomers are currently employedin the Ft. Myers. The state legislature then sets a minimum wage of$13.50 per hour for pet groomers. If there are no changes to eitherthe demand or supply for pet groomers when that minimum wage isimposed, the number of pet groomers employed in the state willbe:

a. Fewer than 148

b. Still 148.

c. More than 148.

d. This is a bilateral monopsony so you canâ€™t tell.

Answer & Explanation Solved by verified expert

3.6 Ratings (617 Votes)

1 MRP is the marginal revenue product of a labour which represents the revenue earned from the last employed worker So Brenda shoud only hire workers upto a point where the MRP from the See Answer

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