Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1

-Refer to Table 16.1. From Period 1 to Period 2, the marginal return to labor is equal to
A) 0.5.
B) 1.0.
C) 2.0.
D) 4.0.

Question

Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1
 
-Refer to Table 16.1. From Period 1 to Period 2, the marginal return to labor is equal to
A) 0.5. 
B) 1.0. 
C) 2.0. 
D) 4.0.

Quizplus · Accepted Answer

The marginal return to labor is calculated as the difference in output between Period 2 and Period 1 divided by the difference in labor utilized between the same periods. In this case, the marginal return to labor is (20 - 10)/(5 - 4) = 10/1 = 10. Therefore, the best choice is C, as the marginal return to labor is equal to 2.0.

Refer to the Information Provided in Table 16