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The menu at Jose's coffee shop consists of a variety of coffee drinks, pastries, and sandwiches. The marginal product of an additional worker can be
The menu at Jose's coffee shop consists of a variety of coffee drinks, pastries, and sandwiches. The marginal product of an additional worker can be dened as the number of customers that can be served by that worker in a given time period. Jose has been employing one worker, but is considering hiring a second and a third. Explain why the marginal product of the second and third workers might be higher than the rst. The marginal product of the second and third workers might be increasing because 0 A. the company can purchase more machinery for the additional workers, and output will increase at an increasing rate. 0 B. workers can specialize at a separate task, and output will increase at an increasing rate. 0 C. workers can take advantage of existing machinery, and total output will increase. 0 D. workers of higher quality can be hired, and output will increase at an increasing rate. Q E. workers can take advantage of existing machinery, and average output will increase. Why might you expect the marginal product of additional workers to diminish eventually? Eventually, as successive workers continue to be added to the production process, 0 A. they may no longer be able to specialize, and output will increase at a diminishing rate. Q B. the company may experience setbacks in technology. 0 C. the company may use less capital, and output will increase at a diminishing rate. 0 D. they may get in each other's way, and total output will decrease. O E. the company's equipment may become outdated and inefficient, and output will increase at a diminishing rate
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