If 14 workers produce a total of 25 cabinets and 15 workers produce a total of 30 cabinets,
A)the marginal product of the fifteenth worker is 2 cabinets
B)the marginal product of the fifteenth worker is 5 cabinets
C)the marginal product of the fifteenth worker is 30 cabinets
D)the marginal product of the fifteenth worker is $5
E)diminishing returns begins with the fifteenth worker

Question

Quizplus · Accepted Answer

Marginal product is the additional output produced by adding one more unit of labor. The marginal product of the 14 workers is 25 cabinets, so their average output is 25/14 cabinets per worker. Similarly, the marginal product of the 15 workers is 30 cabinets, so their average output is 30/15 cabinets per worker. The difference between these averages is 5 cabinets per worker, which is the marginal product of the 15th worker. Therefore, the answer is B.

If 14 Workers Produce a Total of 25 Cabinets and 15