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Multiple Choice
Given the following table showing the total output produced by different numbers of workers, what is the marginal product of labor (MPL) of the seventh worker?Number of Workers: 5, 6, 7, 8Total Output: 100, 120, 135, 145A) 15B) 10C) 13D) 20
A
10
B
20
C
15
D
13
Verified step by step guidance
1
Identify the total output produced by 6 workers and by 7 workers from the table. These values represent the total product (TP) at those labor inputs.
Recall that the marginal product of labor (MPL) is the additional output produced by adding one more worker. Mathematically, it is calculated as the change in total output divided by the change in the number of workers.
Write the formula for MPL as: \(MPL = \frac{TP_{n} - TP_{n-1}}{n - (n-1)}\), where \(TP_{n}\) is the total product with \(n\) workers and \(TP_{n-1}\) is the total product with one fewer worker.
Substitute the values for the 7th worker: \(MPL_7 = \frac{TP_7 - TP_6}{7 - 6} = TP_7 - TP_6\), since the denominator is 1.
Calculate the difference between the total output at 7 workers and 6 workers to find the MPL of the 7th worker.