Table 13-3

-Refer to Table 13-3.Assume Gallo's currently employs 2 workers.What is the marginal product of labor when Gallo's adds a 3rd worker?

Question

Table 13-3
 
-Refer to Table 13-3.Assume Gallo's currently employs 2 workers.What is the marginal product of labor when Gallo's adds a 3rd worker?

Quizplus · Accepted Answer

The marginal product of labor is calculated by the change in output when one more worker is added. From the table, we see that when 2 workers are employed, the output is 40 corks. When 3 workers are employed, the output is 50 corks. Therefore, the marginal product of labor is 10 corks (50-40).

Table 13-3 -Refer to Table 13-3.Assume Gallo's Currently Employs 2 Workers.What Is