Exhibit 21-3

-Refer to Exhibit 21-3. The marginal physical product figures in blanks (B) and (C) are, respectively,
A)10 and 15.
B)15 and 20.
C)20 and 15.
D)15 and 10.
E)10 and 10.

Question

Exhibit 21-3
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-Refer to Exhibit 21-3. The marginal physical product figures in blanks (B) and (C) are, respectively,
A)10 and 15. 
B)15 and 20. 
C)20 and 15. 
D)15 and 10. 
E)10 and 10.

Quizplus · Accepted Answer

The marginal physical product is the change in output resulting from a one-unit increase in input. In this case, the marginal physical product of labor is 15 units of output when 5 units of labor are employed, and 20 units of output when 6 units of labor are employed.

Exhibit 21-3 ​

Exhibit 21-3