CA Foundation P4 · Chapter 3 · Question 3 of 15
Total product of labour (with fixed capital) is as follows: 1 worker: 10 units; 2 workers: 24; 3 workers: 36; 4 workers: 44; 5 workers: 48. The marginal product of the 4th worker is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 8 units
Explanation
MP of the nth worker = TPn - TPn-1. MP of the 4th worker = 44 - 36 = 8 units. 11 units is the average product of 4 workers (44/4), and 12 units is the MP of the 3rd worker (36 - 24).
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