A pizza shop's marginal product of labor, measured as the number of pizzas delivered per week, is MP_L = 55 - 5L, where L is the number of workers. The average price of a pizza in this highly competitive market is $10. The shop can hire workers at the market wage of $300 per week.
a. What is the marginal product of labor for the second worker?
b. Does the law of diminishing marginal productivity apply in this scenario? If so, at what quantity level does it occur?
c. How many workers will the pizza shop hire?

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The Answer of A pizza shop's marginal product of labor, measured as the number of pizzas delivered per week, is MP_L = 55 - 5L, where L is the number of workers. The average price of a pizza in this highly competitive market is $10. The shop can hire workers at the market wage of $300 per week. a. What is the marginal product of labor for the second worker? b. Does the law of diminishing marginal productivity apply in this scenario? If so, at what quantity level does it occur? c. How many workers will the pizza shop hire?

A Pizza Shop's Marginal Product of Labor, Measured as the Number