Question

Suppose that one worker can produce 15 cookies, two workers can produce 35 cookies together, and three workers can produce 63 cookies together. What is the marginal product of the 3rd worker? a. 30 cookies b. 65 cookies c. 28 cookies d. 35 cookies

Answer 1

c.28

Explanation:

Let:

P1 be the production when one worker is employed (P1 = 15 cookies).

P2 be the production when two workers are employed (P2 = 35 cookies).

P3 be the production when three workers are employed (P3 = 63 cookies).

Now, we'll calculate the marginal product of the third worker:

Marginal Product of 3rd Worker = P3 - P2

Marginal Product of 3rd Worker = 63 cookies - 35 cookies

Marginal Product of 3rd Worker = 28 cookies

So, the marginal product of the third worker is 28 cookies. This means that the third worker contributes an additional 28 cookies to the total production when added to the two workers who are already producing 35 cookies together.