Table 18-7
Harold owns a cranberry bog in which he grows cranberries. Harold's farm is a competitive, profit-maximizing firm. Harold's production function is detailed in the table below.

-Refer to Table 18-7.If Harold pays his workers $80 per day and sells his cranberries for $5 per bushel,what is the value of the marginal product of the third worker?

Question

Table 18-7
Harold owns a cranberry bog in which he grows cranberries. Harold's farm is a competitive, profit-maximizing firm. Harold's production function is detailed in the table below.
 
-Refer to Table 18-7.If Harold pays his workers $80 per day and sells his cranberries for $5 per bushel,what is the value of the marginal product of the third worker?

Quizplus · Accepted Answer

To find the marginal product of labor for the third worker, we need to look at the change in output resulting from adding the third worker. The change in output from 10 bushels to 15 bushels means the third worker produced 5 bushels. 
The value of these extra 5 bushels is 5 * $5 = $25. Therefore, the marginal product of the third worker is $25.

Table 18-7 Harold Owns a Cranberry Bog in Which He Grows Cranberries