Transcript for:
Marginal Product of Labor Calculation

I suppose there's a peanut farm called Parker's peanut farm where when there are 15 workers working there they can produce 240 pounds of peanuts and if there are 20 workers working there they can produce 300 pounds of peanuts so given this information we want to try to calculate the marginal product of labor from by going from 15 workers to 20 workers all right so it's like it's going to actually be the average marginal product of labor over that range right so of course using the foreman of the marginal project labor that is of course the change in output that is due to a change in labor right so we can figure out the change in output and the change in labor just by looking at the information we have the change in output is of course well we're going from 240 to 300 so it's 300 minus 240 which is 60 and the change in labor is 20 minus 15 right 15 workers of 20 and so it's gonna be 60 over 5 and so that boils down to being 12 and if you're keeping track of the units that's going to be 12 pounds of peanuts per worker and that's the marginal product of labor at this peanut farm in going from 15 workers to 20 workers all right thank you for watching