Table 18-4
Consider the following daily production data for Wills Golf Balls.Wills sells golf balls for $2.50 cents each and pays the workers a wage of $325 per day.

-Refer to Table 18-4.What is the value of the marginal product of the second worker?

Question

Table 18-4
Consider the following daily production data for Wills Golf Balls.Wills sells golf balls for $2.50 cents each and pays the workers a wage of $325 per day.
 
-Refer to Table 18-4.What is the value of the marginal product of the second worker?

Quizplus · Accepted Answer

The marginal product of the second worker can be found by calculating the difference between the total product of two workers and the total product of one worker. 
Marginal product of the second worker = Total product of two workers - Total product of one worker
= 430 - 250
= 180
Therefore, the value of the marginal product of the second worker is $180. 
Since the worker wage is $325 per day and the marginal product of the second worker is only $180, it is not profitable to hire the second worker. Hence, the best choice would be not to hire the second worker.

Table 18-4 Consider the Following Daily Production Data for Wills Golf Balls.Wills