Question

- At Cosi, 2 people make 10 salads in an hour and 3 people make 24 salads in an hour What is the average product of the 3 person team?

- At Cosi, 2 people make 10 salads in an hour and 3 people make 24 salads in an hourWhat is the average product of the 2 person team?

- At Cosi, 2 people make 10 salads in an hour and 3 people make 24 salads in an hour What is the marginal product of the 3rd person?

- At Cosi, 3 people make 24 salads in an hour and 2 people make 10 salads in an hour If you were to tell the 3rd person to go home, how much production would

you lose?

- At Cosi, 5 people make 50 salads in an hour and 6 people make 60 salads in an hour What is the average product of the 5 person team?

-At Cosi, 5 people make 50 salads in an hour and 6 people make 60 salads in an hour What is the average product of the 6 person team?

- At Cosi, 5 people make 50 salads in an hour and 6 people make 60 salads in an hour What is the marginal product of the 6th person?

At Cosi,

- You would expect that in on hour, 7 people...

		would start to run out of mixing bowls and get in each others way
		make more than 70 salads
		is the beginning of diminishing returns
		would make 69 salads or fewer

Answer 1

Answer)

1. 3 people make 24 salds in an hour,so average product is total salads made/total people involved which gives us 24/3=8
2. Using same logic as above average product of 2 person team is 10/2=5
3. Marginal product can be found out by subtracting total units made by x people from total unitsmade by x+1 people,so 2 people made 10 salads while 3 people made 24 salads which give us 24-10=14 as marginal product from 3rd person.
4. As we have already calculated above,if 3rd person goes we would lose marginal product of 3rd person which is 14 salads.
5. Using the same logic as in part 1 we get 50/5=10 as average product of 5 person team.
6. Using same logic as in part 1 we get 60/6=10 as average product of 6 person team
7. Using same logic as in 3,we get 60-50=10 as marginal product of 6th person
8. What we can see is that 2 people team made 10 salads,3 made 24,while 5 and 6 made 50 and 60 which means average product increases as we increase people,so we can expect 70 or more salads to be made when 7 people joins in,so correct option is b) make more than 7 salads

Answer is complete.Thank you!