Question

Suppose Charles owns a​ lawn-mowing company. Assume that without​ workers, no yards are mowed. When he hires one​ worker, he is able to mow 4 yards per day. With two​ workers, he can mow 10 yards per​ day, and with three​ workers, he can mow 17 yards per day.

a. The marginal product of the first worker is ___________ yards per day.
b. The marginal product of the second worker is ___________ yards per day.
c. ​Last, the marginal product of the third worker is ___________ yards per day.
d. The marginal product of labor potentially increases​ (from one to three​ workers) due to ________

Answer 1

a. 4 yards (4-0)

b. 6 yards (10-4)

c. 7 yards (17-10)

The marginal product is the change in your output as a result of one unit increase in your input.

d. The marginal product of labor potentially increases from one to three workers due to the fact that whenever you increase the input form one side, it results in the the more output from the other side. As the number of workers would increase, so does the productivity and so does the marginal productivity of each worker.

Hope this helps.

Good luck buddy.