(Table: Total Product of Labor at Debbie's Bakery) Debbie owns a bakery and can hire workers to produce cakes selling in a competitive output market at $10 each.The table Total Product of Labor at Debbie's Bakery shows the relation between the number of workers and the number of cakes produced.What is the value of the marginal product for the fourth worker?

Question

Quizplus · Accepted Answer

The marginal product of the fourth worker is the additional revenue generated by hiring the fourth worker. If the fourth worker increases production by 5 cakes and each cake sells for $10, the marginal product is 5 cakes * $10 = $50.

(Table: Total Product of Labor at Debbie's Bakery) Debbie Owns