Question

Daryn is raking leaves to earn money for his university’s economics club. In the first hour, he rakes 8 bags of leaves. In the second hour, he rakes 6 bags of leaves. If he earns $8 per hour, the value of the marginal product of the second hour of labor is $48.

Answer 1

If Daryn earns $8 per hour, the value of the marginal product of the second hour of labor is $16.

The marginal product refers to the change in output value resulting from an additional unit of input.

The marginal product is given by the following formula:

`MP = (\Delta Y)/(\Delta X)`

MP = marginal product

`\Delta X` = change in the firm's use of the input

`\Delta Y` = change in the quantity of output produced (ignoring external cost and benefits).

The amount earned by Daryn in the first hour = $64 (8 x $8)

The amount earned by Daryn in the second hour = $48 (6 x $8)

The marginal product = (64 - 48)/(2 - 1) = 16

= $16

Thus, we can conclude that the marginal product of the second hour of labor by Daryn is $16 not $48.