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 value of the marginal product of the first worker?

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 value of the marginal product of the first worker?

Quizplus · Accepted Answer

The value of the marginal product is equal to the additional output produced by the last worker hired. In this case, the first worker produced an additional 200 golf balls, which generated $100 in revenue ($0.50 per ball). Since the cost of hiring the worker was $30, the value of the marginal product is $100 - $30 = $70. Therefore, the best choice is B.

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