Suppose that the first four units of a variable input generate corresponding total outputs per period of 200, 350, 450, and 500, respectively.The marginal product of the second unit of input is:
A) 50.
B) 100.
C) 150.
D) 200.

Question

Quizplus · Accepted Answer

The marginal product of the second unit of input is calculated by subtracting the total output generated by the first unit of input from the total output generated by the second unit of input. Therefore, it is 350 (total output with two units) - 200 (total output with one unit) = 150.

Suppose That the First Four Units of a Variable Input