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.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 can be calculated by finding the difference in output when the 16th worker is hired compared to when only 15 workers are hired.

Marginal product of the 16th worker = Output with 16 workers - Output with 15 workers

= 176 units/day - 165 units/day

= 11 units/day

Therefore, the marginal product of the 16th worker is 11 units of output (option B).

Suppose a Certain Firm Is Able to Produce 165 Units