Table 18-1 $$\begin{array} { | c | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { Workers }
\end{array} & \text { Output } & \begin{array} { c }
\text { Marginal Product } \
\text { of Labor }
\end{array} & \begin{array} { c }
\text { Value of Margina1 } \
\text { Product of Labor }
\end{array} & \text { Wage } & \text { Marginal Profit } \
\hline 0 & 0 & & & & \
\hline 1 & 100 & & \$ 1000 & \$ 500 & \$ 500 \
\hline 2 & & 80 & \$ 800 & \$ 500 & \
\hline 3 & & 60 & & \$ 500 & \$ 100 \
\hline 4 & 280 & & & \$ 500 & \
\hline 5 & & 20 & & & \
\hline
\end{array}$$ $\begin{array}{|l|l|l|l|l|l|}\hline\begin{array}{l}
\text { Number of } \
\text { Workers }
\end{array} & \text { Output } & \begin{array}{l}
\text { Marginal Product of } \
\text { Labour }
\end{array} & \begin{array}{l}
\text { Value of Marginal } \
\text { Product of Labour }
\end{array}&\text { Wage }&\text { Marginal Profit } \
\hline &0&0\
\hline 1 & 25 & 25 & \$ 125 & \$ 40 & \$ 85 \
\hline 2 & 45 & 20 & \$ 100 & \$ 40 & \$ 60 \
\hline 3 & 60 & 15 & \$ 75 & \$ 40 & \$ 35 \
\hline 4 & 70 & 10 & \$ 50 & \$ 40 & \$ 10 \
\hline 5 & 75 & 5 & \$ 25 & \$ 40 & -\$ 15 \
\hline
\end{array}$
-Refer to Table 18-1.What is the marginal profit of the fourth worker?

Question

Table 18-1 $$\begin{array} { | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Workers }
\end{array} & \text { Output } & \begin{array} { c } 
\text { Marginal Product } \
\text { of Labor }
\end{array} & \begin{array} { c } 
\text { Value of Margina1 } \
\text { Product of Labor }
\end{array} & \text { Wage } & \text { Marginal Profit } \
\hline 0 & 0 & & & & \
\hline 1 & 100 & & \$ 1000 & \$ 500 & \$ 500 \
\hline 2 & & 80 & \$ 800 & \$ 500 & \
\hline 3 & & 60 & & \$ 500 & \$ 100 \
\hline 4 & 280 & & & \$ 500 & \
\hline 5 & & 20 & & & \
\hline
\end{array}$$ $\begin{array}{|l|l|l|l|l|l|}\hline\begin{array}{l}
\text { Number of } \
\text { Workers }
\end{array} & \text { Output } & \begin{array}{l}
\text { Marginal Product of } \
\text { Labour }
\end{array} & \begin{array}{l}
\text { Value of Marginal } \
\text { Product of Labour }
\end{array}&\text { Wage }&\text { Marginal Profit } \
\hline &0&0\
\hline 1 & 25 & 25 & \$ 125 & \$ 40 & \$ 85 \
\hline 2 & 45 & 20 & \$ 100 & \$ 40 & \$ 60 \
\hline 3 & 60 & 15 & \$ 75 & \$ 40 & \$ 35 \
\hline 4 & 70 & 10 & \$ 50 & \$ 40 & \$ 10 \
\hline 5 & 75 & 5 & \$ 25 & \$ 40 & -\$ 15 \
\hline
\end{array}$
-Refer to Table 18-1.What is the marginal profit of the fourth worker?

Quizplus · Accepted Answer

The marginal profit of the fourth worker is calculated by subtracting the marginal cost from the marginal revenue associated with that worker. If the marginal revenue of the fourth worker is $60 (for example) and the marginal cost is $50, the marginal profit would be $10. This is a hypothetical calculation as the exact numbers depend on the data in Table 18-1, which is not provided. However, the concept remains that marginal profit is the difference between marginal revenue and marginal cost for the given worker.

Table 18-1 -Refer to Table 18-1