Question

Jennifer is the only employee of her sole proprietorship. She is entertaining the idea of hiring an additional employee. She knows that on her own she can produce 100 units per day. Jennifer figures that Applicant A wi help her produce 175 units per day whereas Applicant B will help her produce 155 units per day. Which of the following statements is most accurate? A. Applicant B has a marginal product of 75 units. B. Applicant B has an average product of 77.5 units. C. Applicant A has a marginal product of 75 units. D. Applicant A has an average product of 87.5 units.

Answer 1

Applicant A has a marginal product of 75 units.

Step-by-step explanation:

The term "marginal productivity" applies to the extra additional outcome of one work unit; all other inputs are retained continuously. The plant remains the same in terms of technology and production.

The additional sewn jeans, which are produced by recruiting an extra worker for instance, are the marginal productivity.

The formula for the marginal product is that it corresponds to the change in the total number of units produced, which is divided into one variable.

For example, assume that a production line produces 100 toy cars in an hour and adds a new machine.