I want the workings for this question because i have failed to understand the way L was found on the solution provided on the site
QUESTION
The Marginal Productivity of Labour is the extra output the firm can produce using an additional unit of labour (holding other inputs fixed):
MPL = F (K, L +1) – F (K, L)
L |
Y |
MPL |
0 |
0 |
N/A |
1 |
10 |
|
2 |
19 |
|
3 |
27 |
|
4 |
34 |
|
5 |
40 |
|
6 |
45 |
|
7 |
49 |
|
8 |
52 |
|
9 |
54 |
|
10 |
55 |
Determine MPL at each value of L.
I need the working as well because i have failed to understand the way L was found on the solution provided on the site
Marginal product of labor is the additions made to the total product when one extra labor unit is employed. Here MPL for 1st labor unit is TP of 1 unit of labor - TP of 0 unit of labor = (10 - 0) = 10. Again, MPL for 2nd labor unit is TP of 2 units of labor - TP of 1 unit of labor = (19 - 10) = 9. Similarly, MPL for 5th labor unit is TP of 5 unit of labor - TP of 4 unit of labor = (40 - 34) = 6. Use this rule to compile the schedule for MPL.
L | Y | MPL |
0 | 0 | |
1 | 10 | 10 |
2 | 19 | 9 |
3 | 27 | 8 |
4 | 34 | 7 |
5 | 40 | 6 |
6 | 45 | 5 |
7 | 49 | 4 |
8 | 52 | 3 |
9 | 54 | 2 |
10 | 55 | 1 |
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