Table 21.1 $$\begin{array} { | c | r | }
\hline \text { Units of Labor } & \text { Units of Output } \
\hline 0 &0 \
\hline 1 & 15 \
\hline 2 & 35 \
\hline 3 & 45 \
\hline 4 & 52 \
\hline
\end{array}$$ If a fifth unit of labor was added to Table 21.1,its MPP would most likely be
A)0.
B)7.
C)Less than 7.
D)Greater than 7.

Question

Table 21.1 $$\begin{array} { | c | r | } 
\hline \text { Units of Labor } & \text { Units of Output } \
\hline 0 &0 \
\hline 1 & 15 \
\hline 2 & 35 \
\hline 3 & 45 \
\hline 4 & 52 \
\hline
\end{array}$$ If a fifth unit of labor was added to Table 21.1,its MPP would most likely be
A)0.
B)7.
C)Less than 7.
D)Greater than 7.

Quizplus · Accepted Answer

The Marginal Physical Product (MPP) is decreasing as more units of labor are added, indicating diminishing returns. Since the MPP decreased from 10 (from 3 to 4 units of labor) to 7 (from 4 to 5 units of labor), adding a fifth unit of labor would likely result in an MPP of less than 7, following the pattern of diminishing returns.

Table 211 If a Fifth Unit of Labor Was Added to Table