Table 143 -Refer to Table 14

question 45

Essay

Table 14.3
$\begin{array}{|c|c|c|c|}\hline \begin{array}{c}\text { Number of } \\\text { Mechanics }\end{array} & \begin{array}{c}\text { Oil Changes } \\\text { per Day }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Product }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Revenue } \\\text { Product }\end{array} \\\hline 1 & 6 & & \\\hline 2 & 12 & & \\\hline 3 & 17 & & \\\hline 4 & 21 & & \\\hline 5 & 24 & & \\\hline 6 & 26 & & \\\hline\end{array}$
-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?

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Definitions:

Henry Mintzberg

A renowned academic and author in the fields of business and management, known for his work on organizational structures, strategy, and management roles.

Managerial Roles

Specific categories of behavior that managers are expected to perform, including interpersonal, informational, and decisional roles.

Katz

Refers to Daniel Katz, an American social psychologist known for his work on organizational psychology, including studies on motivation, leadership, and attitude change.

Managerial Skill

The ability to make business decisions and lead subordinates within a company to meet the organization's objectives.