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Use the table to answer the 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

370,000
370,000

40,000
40,000

50,000

1 answer

To calculate the marginal product of labor (MPL) associated with hiring a third worker, we need to determine the change in output when the third worker is hired.

  1. Output with 2 workers: 48,000
  2. Output with 3 workers: 52,000

Now, calculate the marginal product of the third worker:

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

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

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