A local computer manufacturer hires an additional worker and pays $10.00 per hour for an eight- hour day.The worker is capable of assembling 3 computers an hour.The firm sells each computer for $1,500.What is the marginal physical product of this worker?
A)$10.00 per hour
B)3 computers per hour
C)$1,500 per unit produced
D)$80.00 per day

Question

Quizplus · Accepted Answer

Marginal physical product (MPP) is the additional output or number of units produced by adding one unit of labor input while holding all other inputs constant. In this case, the worker assembles 3 computers per hour, so the marginal physical product of this worker is 3 computers per hour. The other options are not relevant to the concept of MPP.

A Local Computer Manufacturer Hires an Additional Worker and Pays