When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,total product is 60,and when she hires four workers,total product is 65.The slope of the marginal product curve between two and four workers hired is:
A)positive.
B)zero.
C)infinite.
D)negative.

Question

Quizplus · Accepted Answer

The marginal product of labor (MPL) is the additional output produced by hiring one more unit of labor. It can be calculated by taking the difference in total product when adding an extra unit of labor.

Between two and four workers, the change in total product was 65 - 50 = 15 units of output, while the change in labor input was 4 - 2 = 2 units.

MPL = Change in output / Change in labor input
MPL = 15 / 2
MPL = 7.5

Since the MPL is decreasing (from 10 when 2 workers are hired to 2.5 when 4 workers are hired), the slope of the MPL curve must be negative. Therefore, the correct answer is D.

When Caroline's Dress Factory Hires Two Workers,the Total Product Is