Let L represent the number of workers hired by a firm,and let Q represent that firm's quantity of output.Assume two points on the firm's production function are (L=6,Q=147)and (L=7,Q=174).The marginal product of the seventh worker is
A) 25 units of output.
B) 27 units of output.
C) 37 units of output.
D) 174 units of output.

Question

Quizplus · Accepted Answer

The marginal product of labor (MPL) is the additional output produced by one additional unit of labor. It is calculated as the change in output divided by the change in labor: MPL = (ΔQ/ΔL).

Using the two points provided, we can calculate the change in output and change in labor from the 6th to the 7th worker:

ΔQ = 174 - 147 = 27
ΔL = 7 - 6 = 1

Therefore, the marginal product of the 7th worker is MPL = ΔQ/ΔL = 27/1 = 27.

The correct answer is B) 27 units of output.

Let L Represent the Number of Workers Hired by a Firm,and