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 these workers, it could boost deliveries by 30 deliveries per week.
If each of these applicants is capable of boosting deliveries by 30 per week, what would happen to deliveries if the restaurant hired all three of the applicants?
Question 11 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 per week, since each worker makes an additional 30 deliveries for the firm.
Deliveries would increase by more than 90 per week, since there will likely be increasing marginal product of labor.
Deliveries would remain constant, since there will likely be constant marginal product of labor.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started