Suzy owns a Bahn Mi food truck in Charlotte, North Carolina. Most of her inputs
ID: 1106636 • Letter: S
Question
Suzy owns a Bahn Mi food truck in Charlotte, North Carolina. Most of her inputs are fixed in the short run. In fact, her only variable input is the number of employees that she hires to help her make scrumptious sandwiches. Below you are provided with the total number of Bahn Mi sandwiches that Suzy can produce when she employs different numbers of workers.
Task 1: Using the total product data provided below, identify the marginal product of the 1st, 2nd, 3rd, 4th, and 5th workers.
Number of Workers
Total Number of Bahn Mi Sandwiches Produced
Marginal Product of Labor
0
0
1
16
2
36
3
60
4
80
5
98
Task 2: Does Suzy’s food truck experience increasing or decreasing marginal returns with the 1st, 2nd, 3rd, 4th, and 5th workers? Explain your answer carefully.
Number of Workers
Total Number of Bahn Mi Sandwiches Produced
Marginal Product of Labor
0
0
1
16
2
36
3
60
4
80
5
98
Explanation / Answer
Number of Workers
Total Number of Bahn Mi Sandwiches Produced
Marginal Product of Labor
0
0
1
16
16-0 = 16
2
36
36-16=20
3
60
60-36=24
4
80
80-60=20
5
98
98-80=18
If we look at the able table, the company experience the increasing marginal return till 3rd worker as the marginal product of labour is increasing from 1st labour to 3rd labour.
But when it comes to 4th and 5th labour, the marginal product of labour starts declining thus from 4th and 5th labour, the firm experiences the decreasing marginal return.
Number of Workers
Total Number of Bahn Mi Sandwiches Produced
Marginal Product of Labor
0
0
1
16
16-0 = 16
2
36
36-16=20
3
60
60-36=24
4
80
80-60=20
5
98
98-80=18
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.