You Operate a Car Detailing Business with a Fixed Amount

question 13

Multiple Choice

You operate a car detailing business with a fixed amount 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?

• A) MP = 3 cars
• B) MP = 1.5 cars
• C) MP = 15 cars
• D) MP = -1 cars

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Definitions:

Animal Research

The use of non-human animals in experiments aimed at understanding biological and psychological processes or testing the safety and effectiveness of materials and procedures.

Human Problems

Issues or challenges faced by individuals or societies that affect well-being or social functioning.

Potential Causal Relationship

A relationship between two variables where changes in one variable potentially cause changes in the other but have not been definitively proven.

Hypothesis

A hunch or prediction that certain variables are related in certain ways.