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 fourth worker?
A)$200
B)$1,000
C)$6,400
D)$32,000

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 fourth worker?
A)$200 
B)$1,000 
C)$6,400 
D)$32,000

Quizplus · Accepted Answer

The value of the marginal product of labor is calculated by multiplying the marginal product of labor by the price of the output. If the fourth worker adds 40 units of output, and the price is $5, then the value is 40 * $5 = $200.

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