Question

suppose grace owns a small shoe repair business. the number of pairs of shoes that can be repaired each hour depends on the number of workers grace hires, as shown in the table below. each pair of shoes repaired generates $5 in revenue over and above the materials used in completing the repair. given this information, what is the marginal product of the 2nd worker hired each hour?

Answer 1

The marginal product of the 2nd worker hired each hour is 6 pairs of shoes.

• The marginal product of the 2nd worker hired each hour can be determined by looking at the additional output that is produced when the second worker is hired.
• In the table provided, the number of pairs of shoes repaired per hour increases from 8 to 14 when the second worker is hired.
• Therefore, the marginal product of the 2nd worker is 6 pairs of shoes per hour.