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Table 14.3
-Refer to Table 14.3.Oil Can Harry's, a new automobile service shop, is ready to start hiring.The table above shows the relationship between the number of mechanics the firm hires and the quantity of oil changes it produces.
a.Suppose the price of an oil change is $20.Complete the table by filling in the values for marginal product and marginal revenue product.
b.Oil Can Harry's is an input price-taker.Suppose the wage paid to mechanics is $80 per day.What is the profit-maximizing number of mechanics?
c.Suppose the wage rate rises to $100 per day.
(i)What happens to the firm's demand curve for mechanics?
(ii)What happens to the profit-maximizing quantity of mechanics?
d.Suppose the wage rate is $60 per day and the price of haircuts is now $15.
(i)What happens to the firm's demand curve for mechanics?
(ii)What happens to the profit-maximizing quantity of mechanics?
Relative Deprivation
Relative deprivation is an intolerable gap between the social rewards people feel they deserve and the social rewards they actually receive.
Intolerable Gap
A concept referring to a significant disparity between reality and individuals’ expectations or beliefs, often leading to social change.
Absolute Deprivation
A condition of extreme poverty.
Strain
Strain refers to the pressure individuals feel when they cannot achieve culturally approved goals through legitimate means, leading to stress or deviant behaviors.
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