You operate a car detailing business with a fixed amount of machinery (capital), but you have recently altered the numbe
Posted: Thu May 19, 2022 8:15 am
You operate a car detailing business with a fixed amount of machinery (capital), but you have recently altered the number of workers that you employ per hour. Three employees can generate an average product of 5 cars per person in each hour, and five employees can generate an average product of 4 cars per person in each hour. What is the marginal product of labour as you increase the labour from three to five employees?
a.
MP = 2.5 cars
b.
MP = 1.5 cars
c.
MP = 3 cars
d.
MP = -1 cars
a.
MP = 2.5 cars
b.
MP = 1.5 cars
c.
MP = 3 cars
d.
MP = -1 cars