Calculate Marginal Product of Labour from the data given below when L= 3units.

16

The correct answer is Option 4: 16

Marginal product of an input is defined as the change in output per unit of change in the input when all other inputs are held constant.

When capital is held constant, the marginal product of labour (when L=3) = Change in Output/Change in Input

     MP (L=3)= (40-24)/(3-2)

                     = 16