Answered

Use the table to answer the question.

\begin{tabular}{|c|c|c|c|}
\hline \begin{tabular}{c}
Number of \\
Workers
\end{tabular} & Output & Total Cost (\[tex]$) & Total Revenue (\$[/tex]) \\
\hline 1 & 40,000 & 50,000 & 400,000 \\
\hline 2 & 48,000 & 100,000 & 480,000 \\
\hline 3 & 52,000 & 150,000 & 520,000 \\
\hline
\end{tabular}

Calculate the marginal product of labor associated with hiring a third worker.

A. 370,000
B. 40,000
C. 4,000
D. 50,000



Answer :

GinnyAnswer
Let's find the marginal product of labor when a third worker is hired. The marginal product of labor is the additional output produced as a result of hiring one more worker.

Here are the steps to calculate it:

1. Identify the output with the second worker, which is 48,000 units.
2. Identify the output with the third worker, which is 52,000 units.
3. Calculate the difference between these two outputs to find the marginal product of labor.
[tex]\[ \text{Marginal Product of Labor} = \text{Output with 3 workers} - \text{Output with 2 workers} \][/tex]
[tex]\[ \text{Marginal Product of Labor} = 52,000 - 48,000 \][/tex]
[tex]\[ \text{Marginal Product of Labor} = 4,000 \][/tex]

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

Thus, the correct answer is [tex]\( \boxed{4,000} \)[/tex].

Other Questions