Exhibit 7-13 The Total Product of Labor Given the information in Exhibit 7-13, what is the marginal product of the fourth unit of labor?
A)0 units of output
B)less than the marginal product of the third unit of labor
C)more than 3 units of output
D)5 units of output
E)cannot be determined from the graph of total product

Question

Exhibit 7-13 The Total Product of Labor  Given the information in Exhibit 7-13, what is the marginal product of the fourth unit of labor?
A)0 units of output 
B)less than the marginal product of the third unit of labor 
C)more than 3 units of output 
D)5 units of output 
E)cannot be determined from the graph of total product

Quizplus · Accepted Answer

The marginal product of labor is the additional output that is produced when one more unit of labor is hired while holding all other inputs constant. In this case, we can see that the total product of the fourth unit of labor is 25 units of output, while the total product of the third unit of labor is 20 units of output. Therefore, the marginal product of the fourth unit of labor is 5 units of output, which is greater than the marginal product of the third unit of labor.

Exhibit 7-13 the Total Product of Labor Given the Information