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.
To calculate the marginal product of labor, we need to determine the increase in output resulting from hiring an additional employee.
Before hiring the additional employee, the restaurant produced 250 meals per day with 5 employees. This means that each employee contributed an average of 250/5 = <<250/5=50>>50 meals per day.
After hiring the additional employee, the restaurant now produces 260 meals per day. With 6 employees, each employee now contributes an average of 260/6 = <<260/6=43.333333333333336>>43.33 meals per day.
Therefore, the marginal product of labor is the difference in output between when there were 5 employees and when there were 6 employees, which is 43.33 - 50 = -6.67 meals per day.