If a firm hires 312 workers it will produce 4,522 units of output. If it hires 313 workers it will produce 4,786 units of output. The marginal physical product of labor equals

Question

Quizplus · Accepted Answer

The marginal physical product of labor (MPPL) is the additional output that a firm can produce by hiring one more unit of labor, holding all other inputs constant.
MPPL = (Change in output) / (Change in labor)

Using the information provided in the question:

When the firm hires 312 workers, it produces 4,522 units of output.
When the firm hires 313 workers, it produces 4,786 units of output.

Therefore, the change in output is 4,786 – 4,522 = 264.
The change in labor is 313 – 312 = 1.

MPPL = (264) / (1) = 264.
Hence, the correct answer is C.

If a Firm Hires 312 Workers It Will Produce 4,522