Question

Grace is a self-employed artist. She can make 20 pieces of pottery per week. She is considering hiring her sister Kate to work for her. Both she and Kate (together) can make 55 pieces of pottery per week. What is Kate’s marginal product?

Answer 1

Answer: 30 pieces of pottery

Step-by-step explanation:

The marginal product could simply be explained as the resulting change in output as a result of employing one more unit of labor (input).

When Kate works alone ; pieces of pottery made = 25 pieces

Output when she employed her sister (Kate) and they work together, output = 55 pieces

Hence, Kate's marginal product ;

55 pieces - 25 pieces = 30 pieces