A firm increases the number of workers it hires from 50 to 52 and,as a result,output increases from 100 to 110.Each of the additional units of output can be sold for $2.What is the marginal product of the 52^nd worker?

Question

Quizplus · Accepted Answer

The marginal product of labor is the increase in output resulting from a one-unit increase in the amount of labor, holding all other inputs constant. Here, hiring 2 additional workers increased output from 100 to 110, a total increase of 10 units. Since 2 workers were added, the marginal product per worker is 10 units / 2 workers = 5 units per worker.

A Firm Increases the Number of Workers It Hires from 50