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In the product schedule, total product is 750 units at both 9 and 10 workers, and falls to 740 units at 11 workers. The marginal product of the 11th worker is:
A0 units
B10 units
C-10 units
D-30 units
Answer & Solution
Correct answer: C. -10 units
1. Marginal product is $MP_n = TP_n - TP_{n-1}$.
2. At 11 workers $TP = 740$ and at 10 workers $TP = 750$.
3. So $MP_{11} = 740 - 750 = -10$ units.
4. A negative MP signals the stage of negative returns; 0 is the MP of the 10th worker and +10 ignores the sign, so the answer is -10 units.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 3 Unit I "Theory of Production", p.17_
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