Figure 18-1

question 120

Essay

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop.
-Refer to Figure 18-1. If the shop charges $150 per repair, then what is the value of the marginal product of the second mechanic?

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Definitions:

Average Variable Costs

The total variable costs of production divided by the quantity of output produced.

Demand Changes

Variations in the desire or need for a product or service, influenced by factors like price, income levels, and consumer preferences.

Price

The value that must be exchanged to obtain a good or service.

Quantity

Quantity refers to the amount or number of a material or immaterial good or service.