Question

Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her friend Atul to help her. Together, Riva and Atul can bottle and sell seven cases per week. What is Atul’s marginal product?

a. 3 cases

b. 7 cases

c. 2 cases

d. 5 cases

Answer 1

Answer:

a. 3 cases

Explanation:

Given that

Number of cases sell in a week = 4 cases

Together the cases sold is 7 cases in a week

Based on the information, the atul marginal product is 3 cases as the marginal product refers to the additional per unit to the extra labor hired

The three cases is come from

= Together cases sold - Number of cases sell in a week

= 7 cases - 4 cases

= 3 cases