Barry's Brewpub Is Considering Hiring More Brewmasters

question 41

Multiple Choice

Barry's Brewpub is considering hiring more brewmasters. A pint of brew sells for $3. The market wage of a brewmaster is $150 per day. Assuming that the market for beer is perfectly competitive, Barry's Brewpub will hire another brewmaster only if Barry believes the new brewmaster will:

• A) produce the same number of pints per day as the last brewmaster hired.
• B) produce 50 or more pints per day.
• C) raise total production to 50 or more pints per day.
• D) increase the marginal product by $150 per day.

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Definitions:

Belief Perseverance

The psychological tendency to maintain one's beliefs even in the face of contradictory evidence or information.

Dissonance

A state of conflict or inconsistency between one's beliefs, attitudes, or actions, often leading to discomfort and a desire for resolution.

Attitude Polarization

The phenomenon where a disagreement becomes more extreme as the differing parties continue to consider more information in support of their respective opinions.

Academically Relevant

Pertaining to or having significance in scholarly education or academic pursuits.