Question
Suppose the local pizza restaurant wants to hire another delivery driver to replace the worker who recently quit. The former worker could make 40 deliveries
Suppose the local pizza restaurant wants to hire another delivery driver to replace the worker who recently quit. The former worker could make 40 deliveries per week. The restaurant has received three applications from equally qualified workers. If it hires any one of theseworkers, it could boost deliveries by 30 deliveries per week.
If each of these applicants is capable of boosting deliveries by 30 perweek, what would happen to deliveries if the restaurant hired all three of theapplicants?
options:
Deliveries would increase by less than 90 per week, since there will be diminishing marginal product of labor. | |
Deliveries would increase by exactly 90 perweek, since each worker makes an additional 30 deliveries for the firm. | |
Deliveries would remain constant, since there will likely be constant marginal product of labor. | |
Deliveries would increase by more than 90 perweek, since there will likely be increasing marginal product of labor. |
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