Use the table to answer the question.

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

50,000
50,000

370,000
370,000

4,000
4,000

40,000

Answer 1

To calculate the marginal product of labor associated with hiring a third worker, we need to find the change in output that results from hiring the third worker.

From the table:

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

Now, calculate the marginal product of the third worker:

\[ \text{Marginal Product} = \text{Output with 3 workers} - \text{Output with 2 workers} \] \[ \text{Marginal Product} = 52,000 - 48,000 = 4,000 \]

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