A farm can produce 1,000 bushels of wheat per year with two workers and 1,300 bushels of wheat per year with three workers.The marginal product of the third worker is:

Question

Quizplus · Accepted Answer

The marginal product of labor (MPL) is the additional output that can be produced by adding one more unit of labor, with all other inputs held constant. In this case, the MPL of the third worker can be calculated by subtracting the total output with two workers from the total output with three workers:

MPL = Change in total output / Change in labor input
MPL = (1,300 - 1,000) / (3 - 2)
MPL = 300

Therefore, the marginal product of the third worker is 300 bushels of wheat.

A Farm Can Produce 1,000 Bushels of Wheat Per Year