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Question

Suppose the first four units of a variable input generate corresponding total outputs of 150, 200, 350 and 550. The marginal product of the third unit of input is:

A
50
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B
100
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C
150
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D
200
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Solution

The correct option is D 150
Marginal product refers to the change in production level or additional production which a firm produces for a unit change in the quantity of variable factor. It is the change in total production of the firm.
Marginal product of 3rd unit = Total product of 3rd unit - Total product of 2nd unit
= 350 - 200
= 150.

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