Table (Baristas Labor I). Suppose that the wage rate for baristas is $9 per hour and the average price of cappuccino is $3. 
a. Find the profit-maximizing quantity of labor.
b. What would be the new profit-maximizing quantity of labor if the market wage increased $12 per hour, ceteris paribus?
c. What would be the new profit-maximizing quantity of labor if the market wage remained at $9 per hour but the price of cappuccino increased to $4.50, ceteris paribus?
d. What would be the new profit-maximizing quantity of labor if the market wage remained at $9 per hour and the price of cappuccino at $3 but baristas all became 10% more productive because of an improvement in the way cappuccinos are made?
Definitions:
Pharynx
A muscular tube that connects the mouth and nasal passages with the esophagus and larynx, serving both respiratory and digestive systems.
Digestive System
A complex series of organs and glands responsible for the digestion, absorption of nutrients, and expulsion of waste.
Nasal Cavity
The large air filled space behind the nose, involved in respiration and sense of smell.
Larynx
The voice box or the area of the throat containing the vocal cords and used for breathing, swallowing, and speaking.
Q5: Government regulators want to limit pesticide runoff
Q6: (Figure: Producer Surplus III) Which of the
Q6: Which of the following statements is TRUE?<br>A)
Q13: (Figure: Crumpets and Tea I) Which of
Q44: Suppose that two firms are engaged in
Q56: Minnesota has two oil refineries that emit
Q62: Eric works at an electronics store in
Q82: The output of firms is determined simultaneously
Q84: (Table: Customer Valuations for Lawn Services I)
Q147: (Table: Firms 1 and 2 IV) Payoffs