Question

Use table to answer questions

Hours of Labour	Total output	Marginal Product
0	0	0
1	200	200
2	-	160
3	480	-

What is the marginal product of the third hour labour?

• A. 120
• B. 160
• C. 200
• D. 480

Answer 1

Answer: (A)

120

Hours of labour	Total output	Marginal Output
0	---	---
1	200	200
2	360(200+160)	160
3	480	120(480-360)

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

$480-360=120$