If a firm hires 215 workers it will produce 3,016 units of output. If it hires 216 workers it will produce 3,128 units of output. The marginal physical product of labor equals

Question

Quizplus · Accepted Answer

The marginal physical product of labor (MPPL) measures the change in output resulting from a one-unit increase in labor input. Mathematically, it is calculated as the difference in output divided by the difference in labor input.

MPPL = (change in output) / (change in labor)

In this case,

MPPL = (3,128 - 3,016) / (216 - 215) = 112

Therefore, the correct answer is B.

If a Firm Hires 215 Workers It Will Produce 3,016