Suppose when a car wash has 2 washing stations and 5 workers and is able to wash 100 cars per day. When it adds a third station, but no more workers, it is able to wash 150 cars per day. The marginal product of the third washing station is:

Question

Quizplus · Accepted Answer

To calculate the marginal product of the third washing station, we need to find the increase in total output (car washes) when the third station is added.

Initially, with two washing stations, the total output is 100 cars per day. When the third station is added, the total output increases to 150 cars per day.

Therefore, the marginal product of the third washing station is:

150 cars per day - 100 cars per day = 50 cars per day

So the correct answer is D.

Suppose When a Car Wash Has 2 Washing Stations and 5