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defon
3 years ago
14

Barney builds custom wooden birdhouses. he can make 150 birdhouses per month and sell them for $50 each. his average total cost

is $30 per birdhouse. refer to scenario 13-16. barney is considering hiring his best friend fred to work for him. fred can build 125 birdhouses per month. if barney hires fred, what will be the monthly marginal product
Business
1 answer:
musickatia [10]3 years ago
4 0

Answer:

125 birdhouses per month

Explanation:

Barney=150 birdhouses

Total product=150 birdhouses

If Barney hires Fred

Fred =125 birdhouses

Total product=150+125

=275 birdhouses

Marginal product can be defined as a change in output as a result of a change in variable inputs

It can be calculated as follows

Marginal product=change in total product/change in variable inputs

=275-150/1

=125/1

=125 birdhouses per month

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