Calculate the marginal product of each worker

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Magnificent Blooms is a florist specializing in floral arrangements for weddings, graduations, and other events. Magnificent Blooms has a fixed cost associated with space and equipment of $100 per day. Each worker is paid $50 per day. The daily production function for Magnificent Blooms is shown in the accompanying table.

Quantity of labor (workers)

Quantity of floral arrangements

0

0

1

5

2

9

3

12

4

14

5

15

a. Calculate the marginal product of each worker. What principle explains why the marginal product per worker declines as the number of workers employed increases?

b. Calculate the marginal cost of each level of output. What principle explains why the marginal cost per floral arrangement increases as the number of arrangements increases?

 

Reference no: EM13509144

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