The marginal product of the 5th unit of capital is?

A. 42
B. 85
C. 144
D. 213

Correct Answer:

Option D – 213

Explanation

marginal product is calculated as the change in the total number of units produced divided by the change in a single variable input.

change in the total number of units = 425 – 212 = 213

Change in single variable unit = 5 – 4 = 1

The marginal product of the 5th unit of capital = 213/1 = 213