During the summer Jeremy, a small business owner, can hire extra staff to help him repair boats.On his own Jeremy can repair 10 boats a day, adding a second staff member sees 15 boats a day repaired, and adding a third sees 18 boats a day repaired.The marginal product of the third worker is:
A)18 boats/day
B)15 boats/day
C)5 boats/day
D)3 boats/day

Question

Quizplus · Accepted Answer

The marginal product of the third worker is the additional output from hiring the third worker, which is the difference between the total output with three workers (18 boats/day) and the total output with two workers (15 boats/day), resulting in 3 boats/day.

During the Summer Jeremy, a Small Business Owner, Can Hire