If total product for each of five units of labor is 10, 16, 20, 30, and 34, respectively, the marginal product of the third unit is
A)20
B)10
C)4
D)0
E)6

Question

Quizplus · Accepted Answer

Marginal product is the additional output a firm produces as a result of adding one more unit of labor. The formula for marginal product of labor is MP = Change in total output / Change in labor input. If the total product for each of five units of labor is 10, 16, 20, 30, and 34, respectively, then the marginal product for each unit of labor will be:

MP1 = 10 - 0 = 10
MP2 = 16 - 10 = 6
MP3 = 20 - 16 = 4
MP4 = 30 - 20 = 10
MP5 = 34 - 30 = 4

Therefore, the marginal product of the third unit of labor is 4.

If Total Product for Each of Five Units of Labor