Figure 18-2
The figure below shows the production function for a particular firm.
-Refer to Figure 18-2. Suppose the firm pays a wage equal to $160 per unit of labor and sells its output at $10 per unit. What is the value of the marginal product of labor for the third worker?
A)20 units
B)$200
C)$2,720
D)$3,200

Question

Figure 18-2
The figure below shows the production function for a particular firm. 
-Refer to Figure 18-2. Suppose the firm pays a wage equal to $160 per unit of labor and sells its output at $10 per unit. What is the value of the marginal product of labor for the third worker?
A)20 units 
B)$200 
C)$2,720 
D)$3,200

Quizplus · Accepted Answer

To find the value of the marginal product of labor for the third worker, we need to find the additional output produced when the third worker is hired. From the graph, we can see that the marginal product of labor for the third worker is approximately 20 units. Multiplying this by the price of the output, which is $10 per unit, gives us a value of $200. Therefore, the correct answer is B.

Figure 18-2 The Figure Below Shows the Production Function for a Particular