Question

Question help the menu at josejose​'s coffee shop consists of a variety of coffee​ drinks, pastries, and sandwiches. the marginal product of an additional worker can be defined as the number of customers that can be served by that worker in a given time period. josejose has been employing one​ worker, but is considering hiring a second and a third. explain why the marginal product of the second and third workers might be higher than the first.

Answer 1

Answer: The marginal product of the second and third workers can be higher than the first worker due to specialization. Each of the 2nd or 3rd workers can specialize in a different task. If there is only 1 worker, then that worker will have to do multitasking, take orders and prepare the food. So, the marginal product of the 1st worker will be low. However, when the number of workers increases substantially, the marginal product would diminish because there would be too many people behind the counter trying to accomplish a limited number of tasks.