Lauren owns a bakery that produces, among other things, wedding cakes. She currently has 7 employees; with 7 employees, her bakery can produce 12 wedding cakes per day. If she hired an eighth employee, she'd be able to produce 16 wedding cakes per day. Therefore, the marginal product of the eighth employee is _________ wedding cake(s).

Question

Quizplus · Accepted Answer

The marginal product of the eighth employee is the additional number of wedding cakes produced when the eighth employee is hired. With 7 employees, 12 cakes are produced, and with 8 employees, 16 cakes are produced. Therefore, the marginal product is 16 - 12 = 4 cakes.

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