Asked by
Vesna Mickl
on Dec 17, 2024Verified
Refer to Table 13-5. Assume the Wooden Chair Factory currently employs 5 workers. What is the marginal product of labor when the factory adds a 6th worker?
A) 5 chairs per hour
B) 15 chairs per hour
C) 25 chairs per hour
D) 70 chairs per hour
Marginal Product
The additional output derived from adding one more unit of a specific input, while holding all other inputs constant.
Workers
Individuals or employees who perform tasks or labor for payment in various sectors of an economy.
Output
The volume of output in terms of products or services from a firm, industry, or the economy as a whole during a defined period.
- Differentiate between the concepts of diminishing and increasing marginal product.
Verified Answer
YD
Learning Objectives
- Differentiate between the concepts of diminishing and increasing marginal product.