Question

Suppose that hiring a third worker at the campus coffee shop increases sales from $115 per hour to $130 per hour. What is the marginal product of labor per hour from adding that third worker

Answer 1

Answer: $15 per hour

Explanation:

The marginal product of labor in this instance is the increase in total sales as a result of one additional worker being hired:

= Change in sales/ change in number of workers

= (130 - 115) / 1

= 15/1

= $15 per hour