A small greenhouse produces potted plants (single output) using labor as the variable input; the greenhouse space and watering system (capital) are fixed. Based on the production data shown, what is the marginal product of the 7th worker?
Table: Total Product (TP) of Potted Plants
| Labor (L), workers | Total Product (TP), plants/day |
|---|---|
| 0 | 0 |
| 1 | 4 |
| 2 | 9 |
| 3 | 15 |
| 4 | 20 |
| 5 | 24 |
| 6 | 27 |
| 7 | 29 |
| 8 | 28 |
- 2 plants per day (correct answer)
- 29 plants per day
- 1 plant per day
- 3 plants per day
- 5 plants per day
Explanation: This question focuses on the production function and the concept of marginal product of labor in AP Microeconomics. Marginal product (MP) is the additional output from hiring one more worker, and diminishing marginal returns refer to the stage where each additional worker adds less output than the previous one due to fixed capital. Using the provided table, we calculate MP for each worker to understand the pattern. The marginal product of the 7th worker is 29 - 27 = 2 plants per day, as shown by the change in TP from 6 to 7 workers. Don't confuse marginal product with average product, which is TP divided by labor (e.g., AP at 7 workers is 29/7 ≈4.14). To compute marginal product, always use the formula MP = ΔTP / ΔL, where ΔL is usually 1. Look for diminishing returns by observing when MP starts declining as labor increases while capital is fixed.