A wedding planner determines that one waiter can serve 30 guests, two waiters can serve 70 guests, three waiters can sere 120 guests, four waiters can serve 160 guests, and five waiters can serve 180 guests. The marginal product of the third waiter is guests.
A) 36
B) 40
C) 50
D) 120

C) 50

Explanation:

The additional output produced as a result of employing an additional unit of the variable factor input is called the Marginal Product.

Here we have to calculate the number of additional guests that can be served by the third waiter or marginal product of the third waiter.

Marginal Product of the third waiter = Number of guests served by 3 waiters -  Number of guests served by 2 waiters  

Marginal Product of the third waiter = 120 guests - 70 guests = 50 guests.

Hence, the marginal product of the third waiter is 50 guests.

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