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.When the second worker is hired, what is the change in profit?

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.When the second worker is hired, what is the change in profit?

Quizplus · Accepted Answer

The change in profit when the second worker is hired can be calculated by subtracting the change in total cost from the change in total revenue. Assuming the table shows that hiring the second worker increases total revenue by $100 and increases total cost by $40 (these values are typical for such questions but not directly provided here), the change in profit would be $100 - $40 = $60.

Table 18-1 -Refer to Table 18-1