Question

Assume the total product of two workers is 100 and the total product of three workers is 120. The average product of three workers is ________, and the marginal product of the third worker is ________.

Answer 1

Answer:

The average product of three workers is   40   , and the marginal product of the third worker is     20    .

Explanation:

The average product of labor is the total product divided by the total quantity of labor, this is calculated below:

Total product = 120

Total quantity of labor = 3

∴ average product = 120 ÷ 3 = 40

The marginal product is defined as the output that results from employing an additional labor unit. In this case, when the labor unit was 2, the total product was 100, when a third labor was employed, the total product increased to 120, hence the contribution of the third labor = 120 - 100 = 20. Hence, the marginal product is 20.