The units of variable input (let's use labor in this case) in a production process are 1, 2, 3, 4, and 5. The corresponding total outputs are 8, 16, 24, 31, and 37, respectively. The marginal product for the fourth unit is:A.4B.36C.8D.7E.6
Question
The units of variable input (let's use labor in this case) in a production process are 1, 2, 3, 4, and 5. The corresponding total outputs are 8, 16, 24, 31, and 37, respectively. The marginal product for the fourth unit is:A.4B.36C.8D.7E.6
Solution
The marginal product of labor is the additional output that is produced when one more unit of labor is added, while all other inputs are held constant.
To calculate the marginal product for the fourth unit of labor, we subtract the total output after the third unit of labor from the total output after the fourth unit of labor.
So, the calculation would be:
31 (total output after 4 units of labor) - 24 (total output after 3 units of labor) = 7
Therefore, the marginal product for the fourth unit of labor is 7. So, the correct answer is D. 7.
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