Suppose a certain firm is able to produce 110 units of output per day when 12 workers are hired. The firm is able to produce 120 units of output per day when 13 workers are hired, holding other inputs fixed. The marginal product of the 13th worker is
A)4 units of output.
B)5 units of output.
C)10 units of output.
D)120 units of output.

Question

Quizplus · Accepted Answer

The marginal product of the 13th worker is the additional output produced when one more worker is hired. The output increases from 110 to 120 units, so the marginal product is 120 - 110 = 10 units.

Suppose a Certain Firm Is Able to Produce 110 Units