Question
1.Sally runs a housecleaning business. She usually only puts one cleaner at each house, but the other day she tried putting two cleaners at a
1.Sally runs a housecleaning business. She usually only puts one cleaner at each house, but the other day she tried putting two cleaners at a house, and an amazing thing happened: the two cleaners working together were able to get the house cleaned more than twice as fast as a single cleaner.
a.Does this violate the law of diminishing marginal products?
b.Now that Sally has seen the effect of adding another cleaner, she's had a brilliant idea. If she puts all thirty of her cleaners at the same house, they'll be able to clean it more than 30 times as fast, which means that here business will be able to clean more houses per day without having to increase capital or labor. Will her new business strategy work? Explain.
Please show all work so that I may work through it myself.
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