Question

A firm can produce 450 gallons of milk per day with 4 workers and 500 gallons per day with 5 workers. The marginal product of the fifth worker expressed in gallons per worker per day, is:

Answer 1

The marginal product of fifth worker = 50 gallons.

Step-by-step explanation:

4 workers produce = 450 gallons of milk

5 workers produce = 500 gallons of milk

The marginal product of fifth worker can be calculated by subtracting the total product when there are 4 workers from the total product when there are 5 workers.

The marginal product of fifth worker = 500 – 450 = 50 gallons.