Question

Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 5, Q = 97) and (L = 6, Q = 152). Then the marginal product of the 6th worker is

a.152 units of output.
b.55 units of output.
c.1 unit of output.
d.65 units of output.

Answer 1

Answer:

Option B.

Explanation:

Marginal product of labor measures the change in output when additional labor is added.

To calculate marginal product of labor, simply divide the change in total output by the change in labor.

This is given as:

MPL = ∆Y/∆L = Y2-Y1/L2-L1

Where:

MPL = marginal product of labor

Y = output

L = labor

Therefore we have:

Y2 = 152 L2 = 6

Y1 = 97. L1 = 5

MPL = 152-97/6-5

MPL = 55 units.

Option B.