Quantity of Number of Baseballs Labor Per Day 0 0 1 100 2 240 3 360 4 440 5 500
ID: 1101980 • Letter: Q
Question
Quantity of
Number of Baseballs
Labor
Per Day
0
0
1
100
2
240
3
360
4
440
5
500
This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?
a.
1 worker
b
2 workers
c.
3 workers
d.
4 workers
Please provide step by step solution for points..thanks
Quantity of
Number of Baseballs
Labor
Per Day
0
0
1
100
2
240
3
360
4
440
5
500
Explanation / Answer
Marginal Product: Output that results from one additional unit of a factor of production (such as a labor hour or machine hour), all other factors remaining constant.
Marginal product is maximum corresponding to Number of labours = 2
Labour Bats Produced Marginal Product 0 0 1 100 100-0=100 2 240 240-100 =140 3 360 360-240= 120 4 440 440-360 = 80 5 500 500-440 = 60