Question

Number of Workers Output Total Cost ($) Total Revenue ($)
1 40,000 50,000 400,000
2 48,000 100,000 480,000
3 52,000 150,000 520,000
Calculate the marginal product of labor associated with hiring a third worker.

(1 point)
Responses

4,000
4,000

40,000
40,000

370,000
370,000

50,000

Answer 1

To calculate the marginal product of labor (MPL) for the third worker, we need to find the additional output produced when the third worker is hired.

The marginal product of labor can be calculated using the following formula:

\[ \text{MPL} = \text{Output with 3 workers} - \text{Output with 2 workers} \]

From the table provided:
- Output with 3 workers = 52,000
- Output with 2 workers = 48,000

Now we can calculate the MPL:

\[
\text{MPL} = 52,000 - 48,000 = 4,000
\]

So, the marginal product of labor associated with hiring a third worker is **4,000**.