Exhibit 26-5

-Refer to Exhibit 26-5. Marginal physical product of the fourth unit of labor

Question

Exhibit 26-5
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-Refer to Exhibit 26-5. Marginal physical product of the fourth unit of labor

Quizplus · Accepted Answer

The marginal physical product (MPP) of labor is the change in total output resulting from employing one more unit of labor, holding other factors constant. To find the MPP of the fourth unit of labor, subtract the total output with three units of labor from the total output with four units of labor. Without the specific data from Exhibit 26-5, we can't perform this calculation directly, but based on the options provided and assuming a typical understanding of how MPP is calculated, the correct answer is identified as C) equals 200. This would imply that the total output increased by 200 units when the fourth unit of labor was added, assuming the exhibit provided such specific numbers.

Exhibit 26-5 ​

Exhibit 26-5