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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

40,000
40,000

50,000
50,000

4,000
4,000

370,000

1 answer

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

From the table:

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

Now, we can calculate the marginal product of the third worker:

Marginal Product of Labor (MPL) = Output with 3 workers - 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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