Question

A farm is able to produce 5,000 bushels of peaches per season on 100 acres. Assume it adds one more acre and is able to produce 6,000 bushels per season. The marginal product of the additional acre of land for this farm is:

Answer 1

Marginal product= 1,000

Step-by-step explanation:

Marginal product can be defined as a change in output resulting from a change in factor input.

It is calculated by

Marginal product (MP)= Change in output/change in inputs

That is,

MP= ∆Q/∆input

At

inputs= 100 acres of land

Output= 5,000 bushels of peaches

At

Inputs=101 acres

Output=6000 bushels of peaches

Marginal product= Change in output/change in inputs

Change in output= New - old

=6,000-5,000

=1,000 bushels of peaches

Change in inputs= New - old

= 101-100

=1 acre

Marginal product= 1000/1

= 1,000