Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired. The firm is able to produce 176 units of output per day when 16 workers are hired (holding other inputs fixed). Then the marginal product of the 16th worker is
A) 10 units of output.
B) 11 units of output.
C) 16 units of output.
D) 176 units of output.

Question

Quizplus · Accepted Answer

The marginal product of the 16th worker is the additional output produced when the 16th worker is hired. This is calculated as the difference in output when the 16th worker is added: 176 units - 165 units = 11 units.

Suppose a Certain Firm Is Able to Produce 165 Units