Exhibit 22-14

Assume that labor is the only variable input.
-Refer to Exhibit 22-14.What is the MPP of the fourth unit of labor [blank (D)]?

Question

Exhibit 22-14
  
Assume that labor is the only variable input.
-Refer to Exhibit 22-14.What is the MPP of the fourth unit of labor [blank (D)]?

Quizplus · Accepted Answer

The MPP of the fourth unit of labor is the marginal product of labor for the fourth unit, which can be read from the graph as approximately 15 units. Therefore, D is the correct answer.

As for the best choice(s), more information is needed about the context of the problem (such as the price of labor and the firm's production function) to determine the optimal level of labor input.

Exhibit 22-14 Assume That Labor Is the Only Variable Input