Table 18-9
The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis.
-Refer to Table 18-9. Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day. What is the value of the marginal product of labor for the second worker?
A)$300
B)$650
C)$9,600
D)$20,800

Question

Table 18-9
The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis. 
-Refer to Table 18-9. Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day. What is the value of the marginal product of labor for the second worker?
A)$300 
B)$650 
C)$9,600 
D)$20,800

Quizplus · Accepted Answer

The value of the marginal product of labor (VMPL) is calculated by multiplying the marginal product of labor (MPL) by the price of the output. If the MPL for the second worker is 60 units, then VMPL = 60 units * $5 = $300.

Table 18-9 The Following Table Shows the Production Function for a Particular