Table 18-2
The production details of a small apple farm are shown below.Suppose the market for both apple and apple pickers is competitive, with a current market price for a box of apples being $10.Further, assume apple pickers are the sole marginal cost faced by the farmer in selling his product. $\begin{array}{|l|l|l|l|l|l|}
\hline\begin{array}{l}
\text { Labour } \
\text { (number of } \
\text { workers) }
\end{array} & \begin{array}{l}
\text { Output (boxes } \
\text { per day) }
\end{array} & \begin{array}{l}
\text { Marginal } \
\text { product of } \
\text { labour }
\end{array} & \begin{array}{l}
\text { Value of the } \
\text { marginal } \
\text { product of } \
\text { labour }
\end{array}&\text { Wage }& \begin{array}{l}
\text { Marginal } \
\text { profit }
\end{array} \\
\hline 0&0&-&200&\$100\
\hline 1 & 20 & 20 & 160 & \$ 100 & \$ 100 \
\hline 2 & 36 & & 120 & \$ 100 & \$ 60 \
\hline 3 & 48 & 12 & & \$ 100 & \
\hline 4 & & & & \$ 100 & \
\hline 5 & 60 & 4 & & \$ 100 & -\$ 60 \
\hline
\end{array}$
-Refer to table 18-2.What is the marginal product of labour of the fourth worker?

Question

Table 18-2
The production details of a small apple farm are shown below.Suppose the market for both apple and apple pickers is competitive, with a current market price for a box of apples being $10.Further, assume apple pickers are the sole marginal cost faced by the farmer in selling his product. $\begin{array}{|l|l|l|l|l|l|}
\hline\begin{array}{l}
\text { Labour } \
\text { (number of } \
\text { workers) }
\end{array} & \begin{array}{l}
\text { Output (boxes } \
\text { per day) }
\end{array} & \begin{array}{l}
\text { Marginal } \
\text { product of } \
\text { labour }
\end{array} & \begin{array}{l}
\text { Value of the } \
\text { marginal } \
\text { product of } \
\text { labour }
\end{array}&\text { Wage }&  \begin{array}{l}
\text { Marginal } \
\text { profit }
\end{array} \\
\hline 0&0&-&200&\$100\
\hline 1 & 20 & 20 & 160 & \$ 100 & \$ 100 \
\hline 2 & 36 & & 120 & \$ 100 & \$ 60 \
\hline 3 & 48 & 12 & & \$ 100 & \
\hline 4 & & & & \$ 100 & \
\hline 5 & 60 & 4 & & \$ 100 & -\$ 60 \
\hline
\end{array}$
-Refer to table 18-2.What is the marginal product of labour of the fourth worker?

Quizplus · Accepted Answer

The marginal product of labor is the additional output produced by an additional unit of labor. To find the marginal product of the fourth worker, subtract the total output with three workers from the total output with four workers.

Table 18-2 the Production Details of a Small Apple Farm

Table 18-2
the Production Details of a Small Apple Farm