Question

If the average product of 20 workers is 100 bushels of wheat and the average product of 21 workers of wheat is 99 bushels of wheat, then the marginal product of the 21st worker was?

A.

5 bushels of wheat.

B.

−1 bushel of wheat.

C.

79 bushels of wheat.

D.

99 bushels of wheat

Answer 1

Option C is correct.

Since, the quantity of total output produced per unit of a variable input, holding all other inputs fixed is said to be average product. And the marginal product is the change in total quantity (Q) as one additional unit of input i.e.labor (L) added. Here it is easy to calculates the Marginal product of the 21st worker.

As average product of 20 workers = Total no. of bushels of wheat produced by 20 workers / No. of workers

$\therefore$ 100   = Total no. of bushels of wheat produced by 20 workers / 20

100 * 20 = Total no. of bushels of wheat produced by 20 workers

Total no. of bushels of wheat produced by 20 workers = 2000

and now,   average product of 21 workers = Total no. of bushels of wheat produced by 21 workers / No. of workers

      $\therefore$ 99 = Total no. of bushels of wheat produced by 21 workers / 21

99 * 21 =   Total no. of bushels of wheat produced by 21 workers

Total no. of bushels of wheat produced by 21 workers = 2079

Bushels of wheat produced by an additional worker = Bushels of wheat produced by 21 workers -- Bushels of wheat produced by 20 workers

= 2079 -- 2000

= 79.

So the marginal product of the 21st workers is 79 bushels of wheat.