Question

Suppose a firm's short-run production function is given by Q = 14L +4KL. And, K is...

Suppose a firm's short-run production function is given by Q = 14L +4KL. And, K is fixed at 1. What is the marginal product of the fourth worker?

4

14

14L

18

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Answer #1

Answer :

Q = 14L + 4KL ; this is the short-run production function

K is fixed at 1, therefore putting this value in the given production function we get :

Q = 14L + 4*1*L = 14L + 4L = 18L

Q = 18L

Marginal product of labor is calculated by differentiating this Q with respect to L, doing that we get :

dQ/dL = MPL = 18

Thus the marginal product of labor is 18 and is constant for any number of workers employed.

Answer : The marginal product of the fourth worker is 18 (Option D).

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