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Recently, some college alumni started a moving service for students living on campus

Economics

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Recently, some college alumni started a moving service for students living on campus. They have 3 employees and are debating hiring 1 more. The hourly wage for an employee is $30 per hour. An average moving job takes 4 hours. The company currently does 3 moving jobs per week, but with 1 more employee, the company could manage 5 jobs per week. The company charges $100 for a moving job.

Instructions:

a. What would be the new employees' marginal product of labor?

b. What is the value of that marginal product?