Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 5, Q = 125) and (L = 6, Q = 152). Then the marginal product of the 6th worker is
A)25 units of output.
B)27 units of output.
C)37 units of output.
D)162 units of output.

Question

Quizplus · Accepted Answer

To calculate the marginal product of the 6th worker, we need to calculate the increase in output from hiring the 6th worker compared to the output with 5 workers.

Marginal Product of 6th worker = (Output with 6 workers - Output with 5 workers) / (6 - 5)

Marginal Product of 6th worker = (152 - 125) / 1

Marginal Product of 6th worker = 27 units of output

Therefore, the correct answer is B) 27 units of output.

Let L Represent the Number of Workers Hired by a Firm