The following question(s) deal with the Widget Company, which produces widgets. Widgets are produced according to:

-The marginal product of the second widget worker hired is
A) 2.
B) 8.
C) 10.
D) 12.
E) 22.

Question

The following question(s) deal with the Widget Company, which produces widgets. Widgets are produced according to:
 
-The marginal product of the second widget worker hired is
A) 2. 
B) 8. 
C) 10. 
D) 12. 
E) 22.

Quizplus · Accepted Answer

The marginal product of labor is the increase in output from one additional unit of labor. Looking at the table, the marginal product of the second worker is 10 (20 - 10). Therefore, the best choice is to hire the second worker.

The Following Question(s) Deal with the Widget Company, Which Produces