Suppose the Fluffy Pillow Company produces pillows. The number of pillows it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each pillow can be sold for $2 more than the cost of the materials needed to produce it.
$$\begin{array} { | c | c | }
\hline \text { Number af warkers per haur } & \text { Number of pillavs per hour } \
\hline 0 & 0 \
\hline 1 & 24 \
\hline 2 & 42 \
\hline 3 & 54 \
\hline 4 & 60 \
\hline 5 & 61 \
\hline
\end{array}$$
What is the value of the marginal product of the 2nd worker hired each hour?
A)$36
B)$84
C)$16
D)$24

Question

Suppose the Fluffy Pillow Company produces pillows. The number of pillows it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each pillow can be sold for $2 more than the cost of the materials needed to produce it.  
$$\begin{array} { | c | c | } 
\hline \text { Number af warkers per haur } & \text { Number of pillavs per hour } \
\hline 0 & 0 \
\hline 1 & 24 \
\hline 2 & 42 \
\hline 3 & 54 \
\hline 4 & 60 \
\hline 5 & 61 \
\hline
\end{array}$$  
What is the value of the marginal product of the 2nd worker hired each hour?
A)$36
B)$84
C)$16
D)$24

Quizplus · Accepted Answer

The marginal product of the 2nd worker is the change in output when the number of workers increases from 1 to 2. From the table, we can see that the number of pillows produced per hour increases from 24 to 42 when the number of workers increases from 1 to 2. Therefore, the marginal product of the 2nd worker is 42 - 24 = 18 pillows per hour. Since each pillow can be sold for $2 more than the cost of the materials needed to produce it, the value of the marginal product of the 2nd worker is 18 * $2 = $36.

Suppose the Fluffy Pillow Company Produces Pillows What Is the Value of the Marginal Product of the Pillows