Use the following table to answer the question below:
The amount of total output produced from various combinations of labor and capital.
|Units of Capital|
|Units of Labor||1||2||3||4|
If the amount of labor used increases from three to four units, the marginal product of the second unit of capital:
a. increases by 8 units.
b. increases by 49 units.
c. decreases by 14 units.
d. decreases by 49 units.
e. none of the above.
Marginal cost is an important concept in the economy and production management. It refers to the total cost that has been incurred in the production of one extra unit of the goods or service.
Answer and Explanation: 1
At 3 units of labor:
The marginal product of the 2nd unit of capital = 94 - 53
The marginal product of the 2nd unit of capital = 41
At 4 units of...
See full answer below.
Become a member and unlock all Study Answers
Start today. Try it nowCreate an account
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
fromChapter 3 / Lesson 12
What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.