Question

econ

Widgets R Us currently has a fixed amount of capital, so the only way to vary the output of widgets is to change the number of workers. The table shows the total output of widgets when different numbers of workers are assigned to a widget press. If no workers are working a press, the output for that press is zero. Widgets 10 Workers 1 30 48 64 78 90 98 104 108 100 What is the marginal product of the fifth worker? marginal product: widgets After the firm has hired the fifth worker, what is average product of labor? average product: widgets

Answer 1

Widgets	Workers	marginal product	average product
10	1	10	10
30	2	20	15
48	3	18	16
64	4	16	16
78	5	14	15.6
90	6	12	15
98	7	8	14
104	8	6	13
108	9	4	12
100	10	-8	10

Marginal product = Change in Widgets / Change in workers.

Average product = Widget / worker.

marginal product of fifth worker is 14 widgets

average product of fifth worker is 15.6 widgets.