Hedge Fun is a landscaping firm that specializes in topiary.Last year,the firm had 60 employees and served 120 customers.This year,it had 70 employees and served 140 customers.What is the marginal product of labor?
A) 2.
B) 3.
C) 4.
D) 5.
E) None of the above.

Question

Quizplus · Accepted Answer

The marginal product of labor is calculated by the change in output divided by the change in input. Here, the change in output (customers served) is 20 (from 120 to 140), and the change in input (employees) is 10 (from 60 to 70). Therefore, the marginal product of labor is 20/10 = 2.

Hedge Fun Is a Landscaping Firm That Specializes in Topiary