refer to the following table that shows the short-run production relationship and the product demand schedule for a firm.

$\begin{array}{ccc}
\text { Labor } & \text { Output } & \text { Output Price } \
\hline
1 & 10 & \$ 20.00 \
2 & 15 & 19.00 \
3 & 19 & 18.00 \
4 & 22 & 17.00 \
5 & 24 & 16.00 \
6 & 25 & 15.00
\end{array}$
-What is the value of the third worker's marginal product?
A)$18
B)$57
C)$72
D)$342

Question

refer to the following table that shows the short-run production relationship and the product demand schedule for a firm.

$\begin{array}{ccc}
\text { Labor } & \text { Output } & \text { Output Price } \
\hline
1 & 10 & \$ 20.00 \
2 & 15 & 19.00 \
3 & 19 & 18.00 \
4 & 22 & 17.00 \
5 & 24 & 16.00 \
6 & 25 & 15.00
\end{array}$
-What is the value of the third worker's marginal product?
A)$18
B)$57
C)$72
D)$342

Quizplus · Accepted Answer

The marginal product of the third worker is the additional output produced by adding one more worker. Therefore, the third worker's marginal product is:

19 - 15 = $4.00

To maximize profits, the firm should continue to hire workers as long as their marginal product is greater than or equal to their wage rate. Since the wage rate is not provided in the table, we cannot determine the best choice(s) for the firm.

Refer to the Following Table That Shows the Short-Run Production