Question

Consider Figure 28-1, and suppose that the firm is contemplating 14 units of labor, and it knows that doing so would cause its total production to increase to 4,075 units. What would be the resulting marginal product of the 14th unit of labor employed?

Short answer

The resulting marginal product is$150$units

Step-by-step solution

Introduction

The marginal product of information, say work, is characterized as the additional result that outcomes from adding one unit of the contribution to the current blend of useful elements.

Explanation

The marginal labour of product is calculated using,

$MP=\frac{\mathrm{\Delta }TP}{\mathrm{\Delta }L}$

$$\begin{gathered} MP=\frac{4075-3925}{1} \\ MP=150 \end{gathered}$$

The resulting marginal product is $150$units.