Table 12-6
Wooden Chair Factory

-Refer to Table 12-6.Assume the Wooden Chair Factory currently employs 5 workers.What is the marginal product of labor when the factory adds a 6th worker?

Question

Table 12-6
Wooden Chair Factory
 
-Refer to Table 12-6.Assume the Wooden Chair Factory currently employs 5 workers.What is the marginal product of labor when the factory adds a 6th worker?

Quizplus · Accepted Answer

The marginal product of labor is the additional output produced when one more unit of labor is added, while holding all other inputs constant. From the table, when the factory employs 5 workers, the output is 75 chairs per hour. When a 6th worker is added, the output increases to 90 chairs per hour. Therefore, the marginal product of labor is 15 chairs per hour (90 - 75 = 15). The correct answer is B.

Table 12-6 Wooden Chair Factory