Suppose a 1-unit increase in labour,from 2 to 3 workers,increases output at a woollen mill from 10 to 15 sweaters.The marginal product from the increase in the quantity of labour is
A)1 sweater.
B)3 sweaters.
C)10 sweaters.
D)5 sweaters.
E)15 sweaters.

Question

Quizplus · Accepted Answer

The marginal product of labor is calculated as the change in output over the change in labor input. In this case, the change in labor input is 1 (from 2 to 3 workers) and the change in output is 5 (from 10 to 15 sweaters). Therefore, the marginal product of labor is 5/1 = 5 sweaters per worker. So the correct answer is D.

Suppose a 1-Unit Increase in Labour,from 2 to 3 Workers,increases