Ask Question
5 September, 13:14

Barney builds custom wooden birdhouses. he can make 150 birdhouses per month and sell them for $50 each. his average total cost is $30 per birdhouse. refer to scenario 13-16. barney is considering hiring his best friend fred to work for him. fred can build 125 birdhouses per month. if barney hires fred, what will be the monthly marginal product

+3
Answers (1)
  1. 5 September, 13:17
    0
    125 birdhouses per month

    Explanation:

    Barney=150 birdhouses

    Total product=150 birdhouses

    If Barney hires Fred

    Fred = 125 birdhouses

    Total product=150+125

    =275 birdhouses

    Marginal product can be defined as a change in output as a result of a change in variable inputs

    It can be calculated as follows

    Marginal product=change in total product/change in variable inputs

    =275-150/1

    =125/1

    =125 birdhouses per month
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Barney builds custom wooden birdhouses. he can make 150 birdhouses per month and sell them for $50 each. his average total cost is $30 per ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers