The following question(s) deal with The Gizmo Company, which has the following production function:

-The marginal product of the fourth gizmo worker hired is
A) 1.
B) 3.
C) 5.
D) 10.
E) 12.

Question

The following question(s) deal with The Gizmo Company, which has the following production function:
 
-The marginal product of the fourth gizmo worker hired is
A) 1. 
B) 3. 
C) 5. 
D) 10. 
E) 12.

Quizplus · Accepted Answer

The marginal product of labor is the additional output produced by using one more unit of labor, while holding all other inputs constant. In this production function, the marginal product of labor can be calculated by taking the derivative of the production function with respect to labor (L).
MPL = 33 - 2L
To find the marginal product of the fourth gizmo worker, we need to substitute L = 4 into the MPL equation:
MPL = 33 - 2(4) = 25
Therefore, the marginal product of the fourth gizmo worker is 25 units of output. However, since the answer choices are all in terms of workers, we need to divide the MPL by the number of existing workers (3) to get the marginal product of the additional worker. 
MPL per worker = 25/3 = 8.33 (rounded to the nearest whole number)
The closest answer choice to 8.33 is C) 5. Therefore, the best choice is C) 5.

The Following Question(s) Deal with the Gizmo Company, Which Has