Fig. 1 shows total output produced each day by workers at a mushroom farm. The farm adds workers while keeping the same growing sheds and equipment. Number ...

Assessment: Economics 9214 | Paper 1 Mock 01 | Written Paper 1 Subject: Economics - 9214

Question 1 Report

Fig. 1 shows total output produced each day by workers at a mushroom farm. The farm adds workers while keeping the same growing sheds and equipment.

Number of workersOutput (kg)3456120150© EAGLE BEACON GLOBAL

(a) Calculate the marginal product of the fourth worker, using Fig. 1. [2]

Answer Details

(a) Marginal product is the extra output produced by adding one more worker. From Fig. 1, output rises from 120 kg with three workers to 140 kg with four workers [1]:

\[\text{Marginal product of fourth worker}=140\text{ kg}-120\text{ kg}=20\text{ kg}\]

The fourth worker’s marginal product is 20 kg [2]. It is not the total output produced by four workers; it is the increase caused by employing the fourth worker.

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