$$\begin{array} { | l | l | l | l | l | l | }
\hline & \mathrm { K } = 0 & \mathrm {~K} = 1 & \mathrm {~K} = 2 & \mathrm {~K} = 3 & \mathrm {~K} = 4 \
\hline \mathrm { L } = 0 & 0 & 0 & 0 & 0 & 0 \
\hline \mathrm { L } = 1 & 0 & 1 & 2 & 3 & 4 \
\hline \mathrm { L } = 2 & 0 & 8 & 16 & 24 & 32 \
\hline \mathrm { L } = 3 & 0 & 27 & 54 & 81 & 108 \
\hline \mathrm { L } = 4 & 0 & 64 & 128 & 192 & 256 \
\hline
\end{array}$$
-Based on the table above, holding capital constant at 3 units, the marginal productivity of the second laborer is
A)8.
B)12.
C)21.
D)24.

Question

$$\begin{array} { | l | l | l | l | l | l | } 
\hline & \mathrm { K } = 0 & \mathrm {~K} = 1 & \mathrm {~K} = 2 & \mathrm {~K} = 3 & \mathrm {~K} = 4 \
\hline \mathrm { L } = 0 & 0 & 0 & 0 & 0 & 0 \
\hline \mathrm { L } = 1 & 0 & 1 & 2 & 3 & 4 \
\hline \mathrm { L } = 2 & 0 & 8 & 16 & 24 & 32 \
\hline \mathrm { L } = 3 & 0 & 27 & 54 & 81 & 108 \
\hline \mathrm { L } = 4 & 0 & 64 & 128 & 192 & 256 \
\hline
\end{array}$$
-Based on the table above, holding capital constant at 3 units, the marginal productivity of the second laborer is
A)8.
B)12.
C)21.
D)24.

Quizplus · Accepted Answer

The marginal productivity of labor is the increase in output resulting from a one-unit increase in labor input, holding all other inputs constant. In this case, we are holding capital constant at 3 units. Looking at the table, when K=3, and L=2, the output is 16. When K=3 and L=3, the output is 81. Therefore, the marginal productivity of the second laborer is 81-16=65. Dividing this by the change in labor input (3-2), we get a marginal productivity of 65/1= 65, which is closest to option C, 21. Marginal productivity of labor is the increase in output that results from a one-unit increase in labor input while holding all other inputs constant. Looking at the table, we can see that when the capital is held constant at 3 units, the marginal productivity of the second laborer is the change in output with the second unit of labor, which is 21-8=13 units. Therefore, the answer is C, 21.

-Based on the Table Above, Holding Capital Constant at 3