A farm can produce 1,000 bushels of wheat per year with two workers and 1,300 bushels of wheat per year with three workers.The marginal product of the third worker is _____ bushels.
A)100
B)300
C)1,300
D)2,300

Question

Quizplus · Accepted Answer

The marginal product of a worker is the increase in total output resulting from a one-unit increase in labor input, while holding all other inputs constant.

Therefore, the marginal product of the third worker can be calculated as follows:

Marginal product of third worker = Total output with 3 workers - Total output with 2 workers
= 1,300 bushels - 1,000 bushels
= 300 bushels

Thus, the best choice is (B) 300 as this is the marginal product of the third worker.

A Farm Can Produce 1,000 Bushels of Wheat Per Year