Table 12-6
Wooden Chair Factory

-Refer to Table 12-6.Assume the Wooden Chair Factory currently employs 2 workers.What is the marginal product of labor when the factory adds a 3rd worker?

Question

Table 12-6
Wooden Chair Factory
 
-Refer to Table 12-6.Assume the Wooden Chair Factory currently employs 2 workers.What is the marginal product of labor when the factory adds a 3rd worker?

Quizplus · Accepted Answer

The marginal product of labor is the additional output produced by adding one more unit of labor while holding all other inputs constant. As shown in the table, when the factory adds a 3rd worker, the total output increases from 50 chairs to 70 chairs, which means the additional output produced by the 3rd worker is 20 chairs. Therefore, the marginal product of labor when the factory adds a 3rd worker is 20 chairs per hour. The best choice is B.

Table 12-6 Wooden Chair Factory