A firm produces 200 units of a good when it employs seven workers.The marginal product of an eighth worker is 46 units.If the eighth worker is hired,the firm's total product will increase to ________.

Question

Quizplus · Accepted Answer

The company's marginal product of the eighth worker is 46 units. This means that if the firm employs an eighth worker, the total output produced will rise by 46 units. However, the initial production level with seven workers was 200 units. Thus, if the eighth worker is hired, the total product will be 200 + 46 = 246 units, which is Option C.

A Firm Produces 200 Units of a Good When It