This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
ScanSolve AI Answer
Step 1: Calculate the total product for 6 workers. The average product (AP) for 6 workers is 150 units. Total Product (TP) is calculated as Average Product × Number of Workers. TP_6 = AP_6 × 6 TP_6 = 150 units/worker × 6 workers TP_6 = 900 units Step 2: Calculate the total product for 7 workers. The average product (AP) for 7 workers is 170 units. TP_7 = AP_7 × 7 TP_7 = 170 units/worker × 7 workers TP_7 = 1190 units Step 3: Calculate the marginal product (MP) of the seventh worker. The marginal product of the seventh worker is the change in total product when the seventh worker is added. MP_7 = TP_7 - TP_6 MP_7 = 1190 units - 900 units MP_7 = 290 units The MP of the seventh worker equals: 290 units