Shan's dumpling house can produce 100 dumplings using one worker and 175 dumplings using two workers. what is the marginal product of the second worker?
a.25 dumplings
b.75 dumplings
c.175 dumplings
d.275 dumplings
Marginal product is defined as the incremental change in output that occurs due to a change in the input signals.
It is calculated on two steps: 1- Find the change that occurred to the outputs 2- Divide this change by the additional inputs
For the problem we have here: Step 1: old output = 100 dumplings new output = 175 dumplings change that occurred = 175 - 100 = 75 Step 2: This change occurred as a result of adding 1 worker Therefore: marginal product = 75/1 = 75
