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    Q-1 You have been hired to manage a small manufacturing facility which has cost and production data given in the table below.

    Total Total
    Workers Labor Cost Output Revenue
    1 $300 50 $350
    2 600 140 675
    3 900 220 1120
    4 1200 270 1570
    5 1500 300 1865
    6 1800 315 2070
    7 2100 320 2170

    (a.) What is the marginal product of the second worker?

    (b.) What is the marginal revenue product of the fourth worker?

    (c.) What is the marginal cost of the first worker?

    (d.) Based on your knowledge of marginal analysis, how many workers should you hire? Explain you answer.

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    Solution Preview

    (a) The marginal product of the second worker = 140-50 = 90 units

    (b) The marginal revenue product of the forth worker = 1570-1120=450

    (c) Marginal Cost of the first worker = $300

    (d) There are ...

    Solution Summary

    The solution goes into a great amount of detail related to the manufacturing question being asked. The solution is very easy to follow along and can be easily understood by anyone with a basic understanding of the concepts. The solution answers all the question(s) being asked in a succinct way. Overall, an excellent response.