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
• B. 100
• C. 150
• D. 200

Answer 1

Answer: (C)

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.