Exhibit 7-2

-Given the information in Exhibit 7-2, what is the marginal product of the third unit of labor?
A) 45 pairs of shoes
B) 25 pairs of shoes
C) 15 pairs of shoes
D) $45
E) $25

Question

Exhibit 7-2
 
-Given the information in Exhibit 7-2, what is the marginal product of the third unit of labor?
A) 45 pairs of shoes 
B) 25 pairs of shoes 
C) 15 pairs of shoes 
D) $45 
E) $25

Quizplus · Accepted Answer

The marginal product of labor is calculated by taking the difference in total output between two levels of labor input. From the table, we can see that the total output increases from 100 pairs of shoes with two units of labor to 125 pairs of shoes with three units of labor. Therefore, the marginal product of the third unit of labor is 25 pairs of shoes.

Exhibit 7-2 -Given the Information in Exhibit 7-2, What Is the Marginal