At the Punjab Bakery,two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour.The marginal product of the third worker is
A) 18 cakes, and the average product for three workers is 6 cakes.
B) 9 cakes and is equal to the average product.
C) 4 cakes, and the average product for three workers is 6 cakes.
D) 32 cakes, and the average product for three workers is 9 cakes.
E) 6 cakes, and the average product for three workers is also 6 cakes.

Question

Quizplus · Accepted Answer

Let's denote the marginal product of the third worker as MP3.

From the given information, we can set up the following equations:

2 workers can decorate 14 cakes in an hour:
2*AP2 = 14
AP2 = 7

3 workers can decorate 18 cakes in an hour:
3*AP3 = 18
AP3 = 6

To find MP3, we need to calculate the difference in output when the third worker is added:

MP3 = output with 3 workers - output with 2 workers
MP3 = 18 - 14
MP3 = 4

Therefore, the marginal product of the third worker is 4 cakes, and the average product for three workers is 6 cakes.

Only choice C matches both conditions.

At the Punjab Bakery,two Workers Can Decorate 14 Cakes in an Hour