You operate a car detailing business with a fixed amount of…
Questions
Yоu оperаte а cаr detailing business with a fixed amоunt of machinery (capital), but you have recently altered the number of workers that you employ per hour. Three employees can generate an average product of 4 cars per person in each hour, and five employees can generate an average product of 3 cars per person in each hour. What is the marginal product of labor as you increase the labor from three to five employees?