Use the table to answer the question.
Number of Workers Output Total Cost ($) Total Revenue ($)
1 40,000 50,000 400,000
2 48,000 100,000 480,000
3 52,000 150,000 520,000
Calculate the marginal product of labor associated with hiring a third worker.
a
370,000
b
4,000
c
40,000
d
50,000
b. 4,000
The marginal product of labor (MPL) is calculated by finding the change in output when an additional worker is hired. In this case, the change in output from hiring the third worker can be calculated by subtracting the output with two workers (48,000) from the output with three workers (52,000).
Change in output = Output with three workers - Output with two workers
= 52,000 - 48,000
= 4,000
Therefore, the marginal product of labor associated with hiring a third worker is 4,000, which is option "b".