Answer to Question #52916 in Microeconomics for Yana

Question

Table 1 Production of pizza data
Workers Pizzas
0 0
1 4
2 10
3 15
4 18
5 19

1. Table 1 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals:
a. 4.
b. 10.
c. 14.
d. 6.
e. 15.

2. Table 1 shows the change in the production of pizzas as more workers are hired. The marginal product of the labor input begins to fall with the employment of the ____ worker.
a. first
b. second
c. third
d. fourth
e. fifth.

Answer 1

Table 1 Production of pizza data
Workers Pizzas
0 0
1 4
2 10
3 15
4 18
5 19
1. Table 1 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals: MP = (10-4)/(2-1) = 6
So, the right answer is:
d. 6.
2. Table 1 shows the change in the production of pizzas as more workers are hired. The marginal product of the labor input begins to fall with the employment of the third worker, because MP(2) = 6, MP(3) = 5.
So, the right answer is:
c. third