Question

It is two weeks before finals and the campus coffee shop is anticipating a rush of student customers looking for their pre-study
caffeine boost starting next week. To prepare, the shop manager has started looking for temporary employees, but she isn't sure how
many to hire. She worries about the diminishing marginal product of each additional hire,
The table below shows a range of possible hires the coffee shop manager could make along with the total output (number of lattes
served per hour) and marginal product of labor that results from hiring each employee.

Answer 1

Following are the description of the marginal product.

• The company's marginal product is indeed the additional products produced from more input.
• It is also known as just a marginal physical product.
• It improves the total production by providing one extra input unit into production.
• It measures the number of new units involve in adding an input unit such as materials, work, or overhead.

Please find the complete question and its graph file in the attachment file.

$\bold{Employees}$  $\bold{Total \ Out put}$  $\bold{MP \ of\ Labor}$

$0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0 \\\\ 1 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 5 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 5 \\\\ 2 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 15 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 10 \\\\ 3 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 30 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 15 \\\\ 4 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 42 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 12$

$5 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 52 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 10 \\\\ 6 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 60 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 8\\\\ 7 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 64 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4 \\\\ 8 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 64 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0\\\\ 9 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 60 \ \ \ \ \ \ \ \ \ \ \ \ \ -4$

$10 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 55 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ -5$