Question

Use table to answer question

Hours of Labour	Total output	Marginal Product
0	0	0
1	300	300
2	-	240
3	720	-

What is the marginal product of the third hour of labour?

• A. 120
• B. 160
• C. 200
• D. 180

Answer 1

The correct option is D 180

Hours of Labour	Total output	Marginal Product
0	0	0
1	300	300
2	540	240
3	720	180

Thus, the marginal product of the third hour of labour is :

$720-540=180$.