Suppose a 1-unit increase in labour, from 2 to 3 workers, increases output from 10 to 15 tea cups. The marginal product from the increase in the quantity of labour is
A)1 tea cup.
B)3 tea cups.
C)10 tea cups.
D)5 tea cups.
E)15 tea cups.

Question

Quizplus · Accepted Answer

The marginal product of labour refers to the change in output resulting from a change in the quantity of labour used. In this case, the increase in labour from 2 to 3 workers resulted in an increase in output from 10 to 15 tea cups. Therefore, the marginal product of labour is the additional output produced as a result of the additional unit of labour, which is:

Marginal product of labour = (Change in output) / (Change in labour)
= (15-10) / (3-2)
= 5 tea cups per worker

Therefore, the best choice is D) 5 tea cups.

Suppose a 1-Unit Increase in Labour, from 2 to 3