Lauren owns a bakery that produces, among other things, wedding cakes. She currently has 6 employees; with 6 employees, her bakery can produce 9 wedding cakes per day. If she hired a seventh employee, she'd be able to produce 12 wedding cakes per day. Therefore, the marginal product of the seventh employee is __________ wedding cakes.

Question

Quizplus · Accepted Answer

The marginal product of the seventh employee is calculated by finding the additional output produced by adding the seventh employee.

With 6 employees, the bakery produces 9 wedding cakes per day, which means each employee's average productivity is 1.5 cakes per day (9/6=1.5).

With 7 employees, the bakery produces 12 wedding cakes per day. The additional output from adding the seventh employee is 3 cakes per day (12-9=3).

Therefore, the marginal product of the seventh employee is 3 wedding cakes.

Lauren Owns a Bakery That Produces, Among Other Things, Wedding