Multiple choice

Use table to answer question Hours of Labour Total output Marginal Product 0 0 0 1 300 300 2 - 240 3 720 - What is the total output when 2 hours of labour are employed?

  1. 160

  2. 200

  3. 360

  4. 540

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Total output is the sum of marginal products. For 1 hour: 300. For 2 hours: 300 + 240 = 540.

AI explanation

Using the relationship between total output and marginal product, the total output is the sum of the marginal products. For two hours of labour, the total output is the marginal product of the first hour plus the marginal product of the second hour. Adding these values gives 300 + 240 = 540. The result is 540.