Mary Recently Opened Her Own Styling Salon

question 111

Essay

Mary recently opened her own styling salon.After the first month of operation,she looks at the mix of inputs she is using to see whether she should make any changes.The value of marginal product of her stylists is $125,000,and their wage is $20.Her equipment and salon space produces a value of $250,000,and it costs $400 to rent it.The land,which she rents at $800,produces a value of $300,000.Should she change her input mix or is she maximizing profit with her current arrangement?

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Definitions:

Epididymis

A tightly coiled tube situated behind the testes where sperm are stored and mature.

Ductus Deferens

A tube that carries sperm from the epididymis to the ejaculatory ducts in the male reproductive system.

Seminiferous Tubule

Narrow, coiled tubules within the testes where spermatozoa are produced.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus.