Production Costs of a Firm Quick Check
3 of 53 of 5 Items
Question
A restaurant produces 250 meals per day with five employees. After hiring an additional employee, the restaurant now produces 260 meals per day. Calculate the marginal product of labor.(1 point)
Responses
260
260
2
2
10
10
53
2
If the cost of labor is the only variable cost that the firm faces, what is the cost incurred by the business for each additional unit of labor?
(1 point)
Responses
$50
50 dollars
$10
10 dollars
$16
16 dollars
$80
$10
To calculate the marginal product of labor, you need to find the change in output from hiring an additional employee.
First, subtract the initial output (250 meals per day) from the new output (260 meals per day):
260 - 250 = 10
So, the marginal product of labor is 10.