Number of Workers Output Total Cost ($) Total Revenue ($)

Question

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

40,000
40,000

4,000
4,000

370,000
370,000

50,000

Answer 1

To calculate the marginal product of labor (MPL) associated with hiring a third worker, you need to find the change in output when moving from 2 workers to 3 workers.

Here's the data about output:

• Output with 2 workers = 48,000
• Output with 3 workers = 52,000

Now, we can calculate the marginal product of labor:

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

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

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

So the correct response is:

4,000