Question: A car repair shop finds that by adding two mechanics they are able to fix five additional cars each week. Calculate the marginal product of labor.A car repair shop finds that by adding two mechanics they are able to fix five additional cars each week. Calculate the marginal product of labor.
Added by Helen W.
Step 1
The car repair shop is able to fix 5 additional cars each week by adding 2 mechanics. Show more…
Show all steps
Your feedback will help us improve your experience
Andrew Davis and 58 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
You operate a car detailing business with a fixed amount of machinery (capital), but you have recently altered the number of workers that you employ per hour. Three employees can generate an average product of 4 cars per person in each hour, and five employees can generate an average product of 3 cars per person in each hour. What is the marginal product of labor as you increase the labor from three to five employees?
Andrew D.
A car wash firm calculates that its daily production (in number of cars washed) depends on the number n of workers it employs according to the formula P = 50n - 0.05n^2 cars. Calculate the marginal product of labor at an employment level of 50 workers. HINT [See Example 3.] _______ cars/worker This means that, at an employment level of 50 workers, the firm's daily production will increase at a rate of _______ cars per additional worker it hires.
Charles M.
A car wash firm calculates that its daily production (in number of cars washed) depends on the number n of workers it employs according to the formula P = 40n - 0.05n^2 cars. Calculate the marginal product of labor at an employment level of 50 workers. HINT [See Example 3.] This means that, at an employment level of 50 workers, the firm's daily production will increase at a rate of cars per additional worker it hires.
Donna D.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD