Question: (a) After which barber do diminishing marginal returns begin for Bob's Barber Shop? Explain using numbers (b) Assume Bob's Barber Shop sells haircut services in

(a) After which barber do diminishing marginal returns begin for Bob's Barber Shop? Explain using numbers (b) Assume Bob's Barber Shop sells haircut services in a perfectly competitive market at a unit price of $9. Calculate the marginal revenue product of the sixth barber. Show your work. (c) Bob's Barber Shop hires barbers in a perfectly competitive labor market for barbers at a wage rate of $25 per hour, and the market price of haircut services remains $9. How many barbers will Bob's Barber Shop hire to maximize its profit? Explain using marginal analysis. (d) Assume there is an increase in the demand for haircut services in the market. What will happen to each of the following? (i) The market wage rate. Explain. (ii) The marginal revenue product curve for Bob's Barber Shop. Explain. * Number of Barbers Total Product per Hour 2 12 16 5 19 21 22 8 20Firms in a perfectly competitive factor market are wage takers O True O False

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