Question

A company produces flashlights. If they hire one worker that worker will produce 10 flashlights in an hour, if they hire a second worker both workers will produce 16 flashlights in an hour, and if they hire a third worker they will all produce 18 flashlights. What is the marginal benefit of hiring the third worker?

Answer 1

The marginal benefit of hiring the third worker is 2 flashlights per hour.

The marginal benefit of hiring the third worker can be calculated by determining the additional output (flashlights) produced when the third worker is hired compared to the scenario with only two workers.

Let's break down the production levels:

- 1 worker: 10 flashlights/hour

- 2 workers: 16 flashlights/hour

- 3 workers: 18 flashlights/hour

The marginal benefit of hiring the third worker is the difference in production between having two workers and having three workers:

`\[ \text{Marginal Benefit} = \text{Production with 3 workers} - \text{Production with 2 workers} \]`

`\[ \text{Marginal Benefit} = 18 - 16 = 2 \text{ flashlights/hour} \]`

Therefore, the marginal benefit of hiring the third worker is 2 flashlights per hour.

Answer 2

The correct answer is: 2.

Step-by-step explanation:

Marginal Benefit is an economic term that describes the maximum amount a consumer is willing to pay for an additional unit of a good or service. Typically, the marginal benefit decreases as a person repeatedly consumes more of that good or service.

In the example, the marginal benefit of hiring the third worker will be represented by the difference in the productivity of hiring three workers instead of two. Thus,

Marginal benefit = Productivity of three workers - Productivity of two workers

Marginal benefit = 18 - 16

Marginal benefit = 2