• The Lighthouse Safety Vest Co. makes flotation vests for recreational boaters. They currently employ 50 people and produce 12,000 vests per month. Lighthouse managers know that when they hire one more person, monthly vest production will increase by 200vests. They pay workers $1600 per month. (1st Part Disc.)

1. What is the marginal product of the 51st worker?
2. What is the marginal cost to produce one more vest? (Hint: Think of the marginal cost as the additional worker's pay divided by the changes in output.)