Multiple choice

Directions: Use the given table to answer the question. | Hours of Labour | Total Output | Marginal Product | | --- | --- | --- | | 0 | -- | -- | | 1 | 100 | 100 | | 2 | ------ | 80 | | 3 | 240 | ----- | What will be the total output when 2 hours of labour is employed?

  1. 80

  2. 100

  3. 180

  4. 200
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C Correct answer
Explanation

Marginal product is the change in total output. For 2 hours, Total Output = (Total Output at 1 hour) + (Marginal Product at 2 hours) = 100 + 80 = 180.

AI explanation

We use the formula that total output is the sum of all marginal products. For 1 hour of labor the marginal product is 100, and for the second hour it is 80. Adding these together gives 100 plus 80, which equals 180. The total output is 180.

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