Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by five units and total costs to increase from $3 comma 500 per week to $3 comma 800 per week. What is the marginal product of the fifth worker? nothing units. (Your answer should be a whole number .)

Question

Frank

Business

24 August, 03:57

Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by five units and total costs to increase from $3 comma 500 per week to $3 comma 800 per week. What is the marginal product of the fifth worker? nothing units. (Your answer should be a whole number .)

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Answers (1)

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Sunshine · Answer 1

The marginal product is 5 units.

Explanation:

Marginal product of a labor can be defined as the increase in the output level due to hiring an additional labor.

It is calculated by the ratio change in output to change in labor.

Here, the output level rises by 5 units when labor employed changes by 1 unit.

So, the marginal product of fifth unit of labor will be 5 units.