Marginal product is defined as the incremental change in output that occurs due to a change in the input signals.
It is calculated on two steps:
1- Find the change that occurred to the outputs
2- Divide this change by the additional inputs
For the problem we have here:
Step 1:
old output = 100 dumplings
new output = 175 dumplings
change that occurred = 175 - 100 = 75
Step 2:
This change occurred as a result of adding 1 worker
Therefore:
marginal product = 75/1 = 75
Answer: (b)
