Answer to Question #52915 in Microeconomics for Yana

Question

A farm is able to produce 9,000 pints of strawberries per season on 10 acres. It adds one more acre and is able to produce 12,000 pints per season. The marginal product of land for this farm is:
a. 900 pints per acre per year.
b. 1,000 pints per acre per year.
c. 3,000 pints per acre per year.
d. 12,000 pints per acre per year.

Marginal product measures the change in:
a. total cost brought about by changing production by one unit.
b. product price brought about by changing production by one unit.
c. a firm's revenue brought about by changing production by one unit.
d. the firm's output brought about by employing one additional unit of input.
e. the firm's profit brought about by employing one more input.

Answer 1

If a farm is able to produce 9,000 pints of strawberries per season on 10 acres. It adds one more acre and is able to produce 12,000 pints per season. The marginal product of land for this farm is: MP = (12,000 - 9,000)/(11 - 10) = 3,000 pints per acre per year, so the right answer is c) 3,000 pints per acre per year.
 Marginal product measures the change in:
d. the firm's output brought about by employing one additional unit of input.