Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. $\begin{array} {| c | c | c | c|}
\text { Units of Labor } & \text { Total Product } & \begin{array} { c }
\text { Marginal } \
\text { Product }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Revenue }
\end{array} \
\hline 0 & 0 & & \
\hline 1 & 14 & 14 & \$ 42 \
\hline 2 & & 10 & \
\hline 3 & 30 & & 90 \
\hline 4 & 35 & & \
\hline 5 & 39 & & 117 \
\hline 6 & & & 126 \
\hline 7 & 44 & 2 & 132 \
\hline
\end{array}$ What is the marginal product of the sixth worker?

Question

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. $\begin{array} {| c | c | c | c|} 
\text { Units of Labor } & \text { Total Product } & \begin{array} { c } 
\text { Marginal } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Revenue }
\end{array} \
\hline 0 & 0 & & \
\hline 1 & 14 & 14 & \$ 42 \
\hline 2 & & 10 & \
\hline 3 & 30 & & 90 \
\hline 4 & 35 & & \
\hline 5 & 39 & & 117 \
\hline 6 & & & 126 \
\hline 7 & 44 & 2 & 132 \
\hline
\end{array}$ What is the marginal product of the sixth worker?

Quizplus · Accepted Answer

The marginal product of the sixth worker is the difference between the total product of the sixth worker and the total product of the fifth worker. So, marginal product of the sixth worker = Total product of the sixth worker - Total product of the fifth worker = (39-35) = 4 units. 
The best choice(s) cannot be determined from the given information as we do not know the wage rate of the labor and the cost of other inputs.

Assume Manfred's Shoe Shine Parlor Hires Labor, Its Only Variable