The marginal product of labor is the change in output resulting from a one-unit increase in labor. In this case, when the firm increases the number of employees from four to five, the weekly output rises by four units.
Therefore, the marginal product of the fifth worker is four units.
Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by four
units and total costs to increase from $3 comma 000
per week to $3 comma 300
per week.
Part 2
What is the marginal product of the fifth worker?
1 answer
1 answer