Question

Penelope has 11 people working on her peach farm. The eleventh worker has a marginal product equal to 13 units of peaches. If she employs one more worker, the marginal product of that worker will equal:

Select one:

a. 14 units of peaches.

b. 12 units of peaches.

c. The answer cannot be determined with the information available.

d. 15 units of peaches.

Answer 1

Marginal product refers to the change in total output as one more unit of worker is employed with fixed factor.

Generally the marginal product is inverted u shape curve. Here in this question marginal product of 11th worker is 13 units. But as one more worker employed on the given firm, it can cause marginal product to either increase or decrease or remain constant. As here it is not given that by how much the total output will change as one more will employs.

So the correct answer is:

c. The answer cannot be determined with the information available.