Question
Jill runs a factory that makes lie detectors in Little Rock, Arkansas. This month, Jill's 34 workers produced 690 machines. Suppose Jill adds one more worker and, as a result, her factory's output increases to 700. Jills marginal product of labor from the last worker hired equals OA) 700 OB) 690 OC) 20 OD) 10
Ask by Henry Mann. in the United States
Mar 15,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The marginal product of labor from the last worker hired is 10.
Solution
To find Jill's marginal product of labor from the last worker hired, we need to calculate the increase in output that results from adding one more worker.
1. **Initial Output**: With 34 workers, the factory produced 690 machines.
2. **New Output**: After adding one more worker (making it 35 workers), the factory produced 700 machines.
Now, we can calculate the marginal product of labor (MPL) from the last worker hired:
\[
\text{MPL} = \text{New Output} - \text{Initial Output}
\]
Substituting the values:
\[
\text{MPL} = 700 - 690 = 10
\]
Thus, the marginal product of labor from the last worker hired is 10.
The correct answer is **OD) 10**.
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
error msg
Explain 
Simplify this solution The Deep Dive
Jill's marginal product of labor from the last worker hired is calculated by looking at the increase in output from hiring that worker. By adding one more worker, Jill's total production increased from 690 to 700 machines, which means the marginal product of this last hired worker is 10 machines. So, the answer is OD) 10. In the world of economics, understanding marginal product is key! It helps businesses like Jill's determine if hiring additional workers makes sense financially, as they want to ensure that the extra output outweighs the cost of hiring more staff. It’s a simple yet powerful tool!
