Question

The total output generated by the first four units of variable input is 200 units, 350 units, 450 units and 500 units. The marginal product of the third unit of input is:

Options

• 200 units

• 100 units

• 400 units

• 500 units

Answer 1

100 units

Explanation:

MP₃ = TP₃ − TP₂ 

= 450 − 350 

= 100 units

As a result, the marginal product of the third input unit is 100 units.