The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought.

-Refer to the information above to answer this question.What are the missing numbers for MP in the third column?

Question

The data in the table is for a firm in which labour is the only variable cost and each unit of labour costs the same regardless of how many units are bought.
 
-Refer to the information above to answer this question.What are the missing numbers for MP in the third column?

Quizplus · Accepted Answer

To find the missing numbers for MP (marginal product), we need to calculate the change in total output (TP) that results from each additional unit of labor.

For the first unit of labor, the TP increases from 0 to 12, so the MP for the first unit is 12 - 0 = 12.

For the second unit of labor, the TP increases from 12 to 25, so the MP for the second unit is 25 - 12 = 13.

For the third unit of labor, the TP increases from 25 to 30, so the MP for the third unit is 30 - 25 = 5.

For the fourth unit of labor, the TP increases from 30 to 30, so the MP for the fourth unit is 0.

For the fifth unit of labor, the TP decreases from 30 to 25, so the MP for the fifth unit is 25 - 30 = -5.

Therefore, the missing numbers for MP in the third column are: 12, 25, 5, 0, -5. Choice B is the correct answer.

The Data in the Table Is for a Firm in Which