If the average product of labor falls from 5 to 4.5 when a sixth unit of labor is added,the marginal product of this sixth person is
A) 27.
B) 9.5.
C) 4.5.
D) 2.
E) 0.5.

Question

Quizplus · Accepted Answer

The marginal product of the sixth unit of labor can be calculated by finding the difference in total output before and after adding the sixth unit of labor.

Given that the average product of labor falls from 5 to 4.5 when the sixth unit of labor is added, we can calculate the total output before adding the sixth unit of labor as:

5 x 5 = 25

And the total output after adding the sixth unit of labor as:

4.5 x 6 = 27

The difference in total output is:

27 - 25 = 2

Therefore, the marginal product of the sixth unit of labor is 2.

If the Average Product of Labor Falls from 5 to 4.5