Question

Suppose you work as a manager in a firm. Your job is to hire the right number of people to maximize profit. Every worker you hire costs $150 per day, and each unit of output sells for $15 per unit. Given your current labor force, you know that if you hire another worker, that person will increase your output by 36. 2nd attempt Part 1 (1 point)See Hint What is the marginal product of the worker you are considering hiring?

Answer 1

Answer:36

Explanation:

Marginal product is the additional product that is derived from using additional unit of input, in this example labour. If a firm produces 50 units of an output with 50 labour , if the labour level is increased to 51 and firm produce 51 units, the marginal product of the additional one worker introduced is the additional one unit of the product produced.

In the above question, since the additional worker will increase production by 36 units, that is the marginal product of it's addition.