If the average product of labor is 150 bushels of wheat when three workers farm an acre of land and the marginal product of the fourth worker is 75 bushels,then the total output with four workers is _____ bushels.
A)225
B)50
C)525
D)675

Question

Quizplus · Accepted Answer

The total output with three workers is 3 workers * 150 bushels/worker = 450 bushels. Adding the marginal product of the fourth worker (75 bushels) gives a total of 450 + 75 = 525 bushels.

If the Average Product of Labor Is 150 Bushels of Wheat