Table 7-3 shows the combinations of labor and capital required to produce various level of output.
Table 7-3
-Refer to Table 7-3.Assume that capital remains fixed while labor is the only variable input used in production.If the firm is currently producing 26 units of output using three units of labor,what is the marginal product of labor at this point?
A)2
B)4
C)6

Question

Table 7-3 shows the combinations of labor and capital required to produce various level of output.
Table 7-3 
-Refer to Table 7-3.Assume that capital remains fixed while labor is the only variable input used in production.If the firm is currently producing 26 units of output using three units of labor,what is the marginal product of labor at this point?
A)2 
B)4 
C)6

Quizplus · Accepted Answer

Marginal product of labor (MPL) is the additional output produced by hiring one more unit of labor, holding capital constant. To calculate MPL, we need to look at the change in output due to a change in labor input. In this case, the firm is currently using 3 units of labor to produce 26 units of output. If they add one more unit of labor (4 total), they can produce 32 units of output. Therefore, the MPL of the fourth unit of labor is 32-26 = 6 units. So the answer is (C) 6.

Table 7-3 Shows the Combinations of Labor and Capital Required