100 words To determine the marginal product of the 51st worker at Lighthouse Safety Vest Co. and the marginal cost of producing one more vest, we delve into the concepts of marginal analysis in economics. Marginal product refers to the additional output generated by employing one more unit of a variable input, in this case, labor. The marginal cost, on the other hand, reflects the additional cost incurred by producing one additional unit of output. Initially, Lighthouse Safety Vest Co. employs 50 workers and produces 12,000 vests per month. Upon hiring the 51st worker, the monthly vest production increases by 200 vests. This increase of 200 vests constitutes the marginal product of the 51st worker. To calculate the marginal product of the 51st worker: Marginal Product of 51st Worke = Change in Output = 200 Now, turning to the marginal cost, we consider the additional cost incurred by hiring one more worker, which is the worker's monthly pay. Lighthouse Safety Vest Co. pays workers $1600 per month. Therefore, the marginal cost to produce one more vest can be calculated as: Marginal Cost = Additional Worker's Pay/Change in Output = 1600/200 = $8 per vest This calculation shows that each additional vest produced costs the company $8 in additional wages when they hire the 51st worker. Understanding these marginal concepts is crucial for businesses like Lighthouse Safety Vest Co. as they strive to optimize production and manage costs effectively. Marginal analysis helps firms make decisions regarding optimal resource allocation and production levels, ensuring they operate efficiently and profitably in competitive markets