Let L represent the number of workers hired by a firm and let Q represent that firm's quantity of output.Assume two points on the firm's production function are (L = 12,Q = 122) and (L = 13,Q = 132).What is the marginal product of the 13th worker
A)8 units of output
B)10 units of output
C)122 units of output
D)130 units of output

Question

Quizplus · Accepted Answer

The marginal product of labor (MPL) is the additional output produced by hiring one more unit of labor while holding all other inputs constant. Therefore, we can calculate the marginal product of the 13th worker as the difference between the quantity of output produced with 13 workers and the quantity of output produced with 12 workers, divided by the difference in the number of workers hired:

MPL = (Q2 - Q1) / (L2 - L1)

MPL = (132 - 122) / (13 - 12)

MPL = 10 units of output

Therefore, the best choice is B.

Let L Represent the Number of Workers Hired by a Firm