Suppose a certain firm is able to produce 160 units of output per day when 15 workers are hired.The firm is able to produce 178 units of output per day when 16 workers are hired (holding other inputs fixed).What is the marginal product of the 16th worker
A)10 units of output
B)11 units of output
C)18 units of output
D)176 units of output

Question

Quizplus · Accepted Answer

The marginal product of labor is the additional output that is produced when one additional unit of labor is hired. In this case, the marginal product of the 16th worker can be calculated as follows:

Marginal product of 16th worker = Total output with 16 workers - Total output with 15 workers
= 178 units - 160 units
= 18 units

Therefore, the marginal product of the 16th worker is 18 units of output. Therefore, the answer is choice C.

Suppose a Certain Firm Is Able to Produce 160 Units