Refer to the following:
The amount of total output produced from various combinations of labor and capital.

$$\begin{array}{l}
\text { Units of Capital }\
\begin{array} { c c c c c c }
& & 1 & 2 & 3 & 4 \
\hline \text { Units } & 1 & 20 & 36 & 48 & 53 \
\text { of } & 2 & 38 & 68 & 88 & 94 \
\text { Iabor } & 3 & 53 & 94 & 122 & 133 \
& 4& 63 & 112 & 148 & 164 \
& 5 & 68 & 120 & 164 & 184
\end{array}
\end{array}$$
-If the amount of labor used increases from three to four units, the marginal product of the second unit of capital
A) increases by 8 units.
B) increases by 49 units.
C) decreases by 14 units.
D) decreases by 49 units.
E) none of the above

Question

Refer to the following:
The amount of total output produced from various combinations of labor and capital.

$$\begin{array}{l}
     \text { Units of Capital }\
\begin{array} { c c c c c c } 
& & 1 & 2 & 3 & 4 \
\hline  \text { Units } & 1 & 20 & 36 & 48 & 53 \
\text { of } & 2 & 38 & 68 & 88 & 94 \
\text { Iabor } & 3 & 53 & 94 & 122 & 133 \
& 4& 63 & 112 & 148 & 164 \
& 5  & 68 & 120 & 164 & 184
\end{array}
\end{array}$$
-If the amount of labor used increases from three to four units, the marginal product of the second unit of capital
A) increases by 8 units.
B) increases by 49 units.
C) decreases by 14 units.
D) decreases by 49 units.
E) none of the above

Quizplus · Accepted Answer

The marginal product of the second unit of capital when labor increases from 3 to 4 units is calculated as the difference in output: 112 - 94 = 18. When labor increases from 2 to 3 units, the output difference is 94 - 68 = 26. The marginal product decreases by 26 - 18 = 8 units.

Refer to the Following: the Amount of Total Output Produced

Refer to the Following:
the Amount of Total Output Produced