Scenario 18-1
Harry owns a snow-removal business. He hires workers to shovel driveways for him during the winter. The first worker he hires can shovel 12 driveways in one day. When Harry hires two workers, they can shovel a total of 22 driveways in one day. When Harry hires a third worker, he shovels an additional eight driveways in one day.
-Refer to Scenario 18-1. Suppose that Harry pays each worker $80 per day and that he charges each customer $20 to have his driveway shoveled. What is the value of the marginal product of labor for the second worker?
A)$200
B)$240
C)$800
D)$960

Question

Quizplus · Accepted Answer

The second worker increases the total number of driveways shoveled from 12 to 22, which is an additional 10 driveways. At $20 per driveway, the value of the marginal product of labor for the second worker is 10 driveways * $20 = $200.

Scenario 18-1 Harry Owns a Snow-Removal Business. He Hires Workers to Shovel