Question

Staci's Sign Shoppe makes signs for businesses. Staci is currently producing 210 signs per week with three employees. Staci hires an additional worker and total output per week rises to 328 signs. At four workers, marginal product is _____ the average product; thus, average product is _____.

Answer 1

Answer:

Marginal product: 118

Marginal product is 1.68 times average product

New average product: 82

Explanation:

Marginal product is the difference that we found after we add one more unit of production into the business, this means the amount of products that we produce more of, once we hire a new worker or add a new machine, in this case marginal product is 118 units more by hiring an additional worker, and the marginal product divided by the last average product is 1.68 times more, and the new average product would be 328 between 4 which is the new number of workers, which results in 82.