Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
If the amount of capital increases from 3 to 4 units,the marginal product of the fourth unit of labor
A)decreases by 3 units.
B)increases by 8 units.
C)increases by 5 units.
D)decreases by 12 units.
E)none of the above

Question

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
 If the amount of capital increases from 3 to 4 units,the marginal product of the fourth unit of labor
A)decreases by 3 units. 
B)increases by 8 units. 
C)increases by 5 units. 
D)decreases by 12 units. 
E)none of the above

Quizplus · Accepted Answer

The marginal product of labor is the additional output produced by adding one more unit of labor while holding all other inputs constant. Looking at the table, when capital is 3 units, the marginal product of the third unit of labor is 12. When capital increases to 4 units and labor increases from 3 to 4 units, the total output increases from 94 to 102. Therefore, the marginal product of the fourth unit of labor is 102-94=8. Thus, the marginal product of the fourth unit of labor increases by 5 units from 3 to 4 units of capital.

Use the Following Table to Answer the Question Below: the Amount