Question

If the units of variable input in a production process are 1, 2, 3, 4, and 5, and the corresponding total outputs are 30, 34, 37, 39, and 40, respectively. The marginal product of the fourth unit is:

A. 2
B. 1
C. 37
D. 39

Answer 1

A. 2

Step-by-step explanation:

Marginal product refers to the extra output that results from the deployment of extra input. It is the changes in output occasioned by employment of additional labor, worker, or other inputs.

In this case, the marginal product of the 4th input will be the changes in output due to the usage of the input. To obtain the marginal product of the 4th input, we consider production up to the 4th unit and separate it from the output of the first three inputs. In other words, the production of the 4th input minus the output of the first three.

i.e., 4th output minus the first three

=39-37

=2