Suppose that an accounting firm with 10 employees hires another accountant. By doing so, it goes from serving 30 customers each week to serving 32 customers each week. What is the marginal product of labor for the new accountant? A)32 B)2 C)62 D)10

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Quizplus · Accepted Answer

The marginal product of labor refers to the additional output (in this case, customers served) that results from adding one more unit of labor (in this case, one more accountant). The firm increased its service from 30 to 32 customers with the addition of one accountant, so the marginal product of labor is 32 - 30 = 2.

Suppose That an Accounting Firm with 10 Employees Hires Another