Question

A farm can produce 1,000 bushels of wheat per year with two workers or 1,300 bushels of wheat per year with four workers. The marginal product of the fourth worker is _______ bushels.a. 1,300
b. 300
c. 100
d. 150

Answer 1

Answer:

The correct answer is option (D).

Explanation:

According to the given scenario, given data are as follows:

Production with two workers = 1,000 bushels

Production with four workers = 1,300 bushels

Hence, the marginal product of the fourth worker can be calculated by the following formula:

Marginal Product of Labor ( MPL ) = Change in output quantity / Change in labor quantity

MPL = ( 1300 - 1000 ) / ( 4 - 2 )

MPL = 300 / 2

MPL = 150

Therefore, the marginal product of the fourth worker is 150 bushels.