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Instructions: Click the buttons above the graphing for Fixed Costs or Wage Rate (the cost per worker). Move the Productivity Index right to see the
Instructions: Click the buttons above the graphing for Fixed Costs or Wage Rate (the cost per worker). Move the Productivity Index right to see the effect of increasing productivity by up to 25%. The table and graphs will update as Settings are changed. Set Fixed Costs to $100, Wage Rate to $40 per worker, and slide the Productivity Index so that 1 worker yields 22 units of output. This represents 10% greater productivity that the firm's current levels. What is the marginal product of the fourth worker? The marginal product of the fourth worker can be calculated as a subtraction problem using two numbers from the table. This calculation is
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