A farm can produce 1,000 bushels of wheat per year with 2 workers and 1,300 bushels of wheat per year with 3 workers.The marginal product of the third worker is:
A) 100 bushels.
B) 300 bushels.
C) 1,300 bushels.
D) 2,300 bushels.

Question

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.

In this case, the marginal product of the third worker can be calculated as the difference between the total output produced with three workers and the total output produced with two workers, divided by the change in the number of workers:

Marginal product of third worker = (Total output with 3 workers - Total output with 2 workers) / (Change in number of workers)

Marginal product of third worker = (1,300 - 1,000) / (3 - 2)

Marginal product of third worker = 300

Therefore, the marginal product of the third worker is 300 bushels.

A Farm Can Produce 1,000 Bushels of Wheat Per Year