Harrison, Carla, and Fred are housepainters. Harrison and Carla can paint 100 square feet per hour using

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Harrison, Carla, and Fred are housepainters. Harrison and Carla can paint 100 square feet per hour using a standard paintbrush, and Fred can paint 80 square feet per hour. Any of the three can paint 200 square feet per hour using a roller. (LO3)

a. Assume Harrison, Carla, and Fred have only paintbrushes at their disposal.

What is the average labor productivity, in terms of square feet per painterhour, for the three painters taken as a team? Assume that the three painters always work the same number of hours.

b. Repeat 7a for the cases in which the team has one, two, three, or four rollers available. Are there diminishing returns to capital?

c. An improvement in paint quality increases the area that can be covered per hour (by either brushes or rollers) by 20 percent. How does this technological improvement affect your answers to 7b? Are there diminishing returns to capital? Does the technological improvement increase or reduce the economic value of an additional roller?

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Principles Of Macroeconomics

ISBN: 9780415568685

2nd Brief Edition

Authors: Robert Frank, Ben Bernanke

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