Sam, who owns a carpentry shop, discovered that with 4 laborers he could produce 18 cabinets per day. With 5 laborers he produced 25 cabinets and with 6 laborers he produced 36 cabinets. What was the MPP of the 5th laborer?

Question

Quizplus · Accepted Answer

MPP (Marginal Physical Product) is the additional output produced by hiring an additional worker.

To find the MPP of the 5th laborer, we need to compare the output of the firm with 4 workers (18 cabinets) and the output with 5 workers (25 cabinets):

MPP of the 5th laborer = (output with 5 workers - output with 4 workers) / number of additional workers
MPP of the 5th laborer = (25 - 18) / 1
MPP of the 5th laborer = 7

Therefore, the MPP of the 5th laborer is 7 cabinets. The best choice is B.

Sam, Who Owns a Carpentry Shop, Discovered That with 4