Table 18-10
-Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?
A)1 worker
B)2 workers
C)3 workers
D)4 workers

Question

Table 18-10 
-Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?
A)1 worker 
B)2 workers 
C)3 workers 
D)4 workers

Quizplus · Accepted Answer

The marginal product of labor is the change in output divided by the change in labor. In this case, the marginal product of labor is greatest when the change in output is greatest for a given change in labor. Looking at the table, we can see that the change in output is greatest when the number of workers increases from 1 to 2. Therefore, the marginal product of labor is greatest when there are 2 workers.

Table 18-10 -Refer to Table 18-10. This Table Describes the Number of the Number