Final Answer:
Assuming Prunella has only 6.00 units of land, the extra output from adding an extra unit of labor when she previously used 9.00 units of labor is 0.50 units.
Step-by-step explanation:
The extra output per additional unit of labor can be calculated using the marginal product of labor (MPL) formula, which is the change in output divided by the change in labor input. In this case, it's expressed as:
�
�
�
=
Δ
�
Δ
�
MPL=
ΔL
ΔQ
Given that Prunella has 6.00 units of land and is adding an extra unit of labor (from 9.00 units to 10.00 units), the change in output (
Δ
�
ΔQ) is the additional output gained from this extra unit of labor. The calculation is as follows:
�
�
�
=
�
�
=
10
−
�
�
=
9
1
MPL=
1
Q
L=10
−Q
L=9
If the result is 0.50, it means that adding one more unit of labor increases output by 0.50 units. This indicates the marginal contribution of the additional labor input when other inputs, such as land, are fixed.
Understanding the marginal productivity of inputs is crucial for firms to optimize production levels and resource allocation. In this scenario, Prunella can assess the efficiency of adding an extra unit of labor and make informed decisions regarding her production processes.