Table 18-B
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
-Refer to Table 18-11. What is the third worker's marginal product of labor?
A)120 cupcakes
B)140 cupcakes
C)160 cupcakes
D)180 cupcakes

Question

Table 18-B
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day. 
-Refer to Table 18-11. What is the third worker's marginal product of labor?
A)120 cupcakes 
B)140 cupcakes 
C)160 cupcakes 
D)180 cupcakes

Quizplus · Accepted Answer

To find the third worker's marginal product of labor, we need to look at the increase in output when the third worker is added.

When there are two workers, the daily output is 220 cupcakes. When the third worker is added, the daily output increases to 380 cupcakes.

The marginal product of labor for the third worker is the increase in output when they are added, which is 380 - 220 = 160 cupcakes.

Therefore, the answer is (C) 160 cupcakes.

As for the best choice(s), there is not enough information provided in the question to determine a best choice.

Table 18-B Consider the Following Daily Production Data for MadeFromScratch, Inc. MadeFromScratch