In the short- run, a firm increases its labour input from 10 to 11 workers and output increases from 500 to 560 units. Which of the following statements is correct?
A)The marginal product of the 11th worker is 50.
B)The average product of 11 workers is 60.
C)The marginal product of the 11th worker is 60.
D)The average product of 11 workers is 50.

Question

Quizplus · Accepted Answer

Marginal product of labor (MPL) is the additional output produced as a result of employing an additional unit of labor, keeping all other factors constant. In this problem, we can calculate the marginal product of the 11th worker as follows:
MPL = (Change in output) / (Change in labor)
MPL = (560 - 500) / (11 - 10)
MPL = 60
Therefore, the correct statement is that the marginal product of the 11th worker is 60.

In the Short- Run, a Firm Increases Its Labour Input