Suppose a firm currently produces 325 units of output per day with 15 workers. The firm is able to produce 340 units of output with a 16th worker. What is the marginal product of the 16th worker?
A)10 units of output
B)15 units of output
C)16 units of output
D)25 units of output

Question

Quizplus · Accepted Answer

Marginal product is the additional output that is produced when one more unit of labor is added, holding all other inputs constant. Here, the marginal product of the 16th worker is the additional units of output produced by adding the 16th worker. Thus, the marginal product is:

Marginal Product = Total Product with 16 workers - Total Product with 15 workers
Marginal Product = 340 units - 325 units
Marginal Product = 15 units of output

Suppose a Firm Currently Produces 325 Units of Output Per