Table 18-2
Consider the following daily production data for Davis Golf Balls, Inc. Davis Golf Balls, Inc. sells golf balls for 50 cents each and pays the workers a wage of $30 a day.

-Refer to Table 18-2.What is the fourth worker's marginal product of labor?

Question

Table 18-2
Consider the following daily production data for Davis Golf Balls, Inc. Davis Golf Balls, Inc. sells golf balls for 50 cents each and pays the workers a wage of $30 a day.
 
-Refer to Table 18-2.What is the fourth worker's marginal product of labor?

Quizplus · Accepted Answer

We can calculate marginal product of labor as the difference between the total output with n workers and the total output with n-1 workers. Using the table, we can see that the total output with 3 workers is 250 golf balls, and the total output with 4 workers is 350 golf balls. Therefore, the fourth worker's marginal product of labor is 350 - 250 = 100 golf balls.

As for the best choice, it is not clear what the question is asking for. If it is asking for the best production level or number of workers, we would need more information such as the firm's total cost curve and revenue curve. If it is asking for the best answer choice, it would be C as explained above.

Table 18-2 Consider the Following Daily Production Data for Davis Golf Balls