Suppose the MC Hammer Company produces hammers. The number of hammers it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each hammer can be sold for $2 more than the cost of the materials needed to produce it. $$\begin{array} { | c | c | }
\hline \text { Number of warkers per hour } & \text { Number of humers per haur } \
\hline 0 & 0 \
\hline 1 & 20 \
\hline 2 & 36 \
\hline 3 & 48 \
\hline 4 & 56 \
\hline 5 & 60 \
\hline
\end{array}$$
What is the value of the marginal product of the 2nd worker hired each hour?
A)$36
B)$72
C)$16
D)$32

Question

Suppose the MC Hammer Company produces hammers. The number of hammers it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each hammer can be sold for $2 more than the cost of the materials needed to produce it. $$\begin{array} { | c | c | } 
\hline \text { Number of warkers per hour } & \text { Number of humers per haur } \
\hline 0 & 0 \
\hline 1 & 20 \
\hline 2 & 36 \
\hline 3 & 48 \
\hline 4 & 56 \
\hline 5 & 60 \
\hline
\end{array}$$  
What is the value of the marginal product of the 2nd worker hired each hour?
A)$36
B)$72
C)$16
D)$32

Quizplus · Accepted Answer

The marginal product of the 2nd worker is the additional number of hammers produced by hiring the 2nd worker, which is 36 - 20 = 16 hammers. Since each hammer can be sold for $2 more than the cost of materials, the value of the marginal product is 16 hammers * $2 = $32.

Suppose the MC Hammer Company Produces Hammers What Is the Value of the Marginal Product of the Hammers