Multiple choice

Use table to answer questions Hours of Labour Total output Marginal Product 0 0 0 1 200 200 2 - 160 3 480 - What is the marginal product of the third hour labour?

  1. 120

  2. 160

  3. 200

  4. 480
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A Correct answer
Explanation

Marginal product for the third hour equals the increase in total output from two hours to three hours. The output at two hours is 200 + 160 = 360, so the third-hour marginal product is 480 - 360 = 120.

AI explanation

Using the relationship between total output and marginal product, we first find the total output for two hours of labour by summing the marginal products: 200 + 160 = 360. The marginal product of the third hour is the total output for three hours minus the total output for two hours. Calculating this gives 480 minus 360 = 120. The result is 120.

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