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Multiple Choice
Refer to Table 13-9. If the total output with two workers is 30 units and with three workers is 42 units, what is the marginal product of the third worker?
A
12 units
B
42 units
C
30 units
D
72 units
Verified step by step guidance
1
Identify the total output when there are two workers, which is given as 30 units.
Identify the total output when there are three workers, which is given as 42 units.
Recall that the marginal product of a worker is the additional output produced by adding one more worker, calculated as the change in total output when the number of workers increases by one.
Calculate the marginal product of the third worker by subtracting the total output with two workers from the total output with three workers using the formula: \(\text{Marginal Product of 3rd worker} = \text{Total Output with 3 workers} - \text{Total Output with 2 workers}\).
Substitute the values into the formula: \(\text{Marginal Product of 3rd worker} = 42 - 30\) to find the additional output contributed by the third worker.