Use the following to answer question:
-(Table: Total Product of Labor at Debbie's Bakery)Use Table: Total Product of Labor at Debbie's Bakery.Debbie can sell cakes at $10 each.What is the value of the marginal product for the fourth worker?
A)5 cakes
B)$50
C)$210
D)21 cakes

Question

Use the following to answer question: 
-(Table: Total Product of Labor at Debbie's Bakery)Use Table: Total Product of Labor at Debbie's Bakery.Debbie can sell cakes at $10 each.What is the value of the marginal product for the fourth worker?
A)5 cakes 
B)$50 
C)$210 
D)21 cakes

Quizplus · Accepted Answer

The marginal product of the fourth worker is the additional output produced when the fourth worker is hired. From the table, we can see that the total product of the third worker is 210 cakes and the total product of the fourth worker is 230 cakes. Therefore, the marginal product of the fourth worker is 20 cakes (230 - 210). Since Debbie can sell cakes at $10 each, the value of the marginal product of the fourth worker is $200 (20 cakes x $10). Therefore, the correct answer is B.

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