-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the second worker?

Question

Quizplus · Accepted Answer

The marginal product of the second worker is the change in total product when the number of workers increases from 1 to 2. From the table, we can see that the total product increases from 100 to 120 when the number of workers increases from 1 to 2. Therefore, the marginal product of the second worker is 120 - 100 = 20. Since the price of a car wash is $5, the value of marginal product of the second worker is 20 * $5 = $100.

-Winnie's Car Wash Is a Perfectly Competitive Firm