Table 18-6
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.

$$\begin{array} { | c | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Labor } \
\text { (Number of } \
\text { workers) }
\end{array} & \begin{array} { c }
\text { Output } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { Product } \
\text { of Labor } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c }
\text { Value of the } \
\text { Marginal } \
\text { Product of Labor } \
\text { (Cupcakes) }
\end{array} & \begin{array} { c }
\text { Wage } \
\text { (Dollarsper } \
\text { worker per } \
\text { day) }
\end{array} & \begin{array} { c }
\text { Margin } \
\text { Profit } \
\text { (Dollar }
\end{array} \
\hline 0 & 0 & & & 325 & \
\hline 1 & 200 & & & 325 & \
\hline 2 & 350 & & & 325 & \
\hline 3 & 475 & & & 325 & \
\hline 4 & 575 & & &325 & \
\hline
\end{array}$$
-Refer to Table 18-6. What is the value of the marginal product of the first worker?
A)$200
B)$400
C)$500
D)$700

Question

Table 18-6
Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $3 each and pays the workers a wage of $325 per day.
​
​
 $$\begin{array} { | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Labor } \
\text { (Number of } \
\text { workers) }
\end{array} & \begin{array} { c } 
\text { Output } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Product } \
\text { of Labor } \
\text { (Cupcakes per } \
\text { day) }
\end{array} & \begin{array} { c } 
\text { Value of the } \
\text { Marginal } \
\text { Product of Labor } \
\text { (Cupcakes) }
\end{array} & \begin{array} { c } 
\text { Wage } \
\text { (Dollarsper } \
\text { worker per } \
\text { day) }
\end{array} & \begin{array} { c } 
\text { Margin } \
\text { Profit } \
\text { (Dollar }
\end{array} \
\hline 0 & 0 & & & 325 & \
\hline 1 & 200 & & & 325 & \
\hline 2 & 350 & & & 325 & \
\hline 3 & 475 & & & 325 & \
\hline 4 & 575 & & &325 & \
\hline
\end{array}$$ ​
-Refer to Table 18-6. What is the value of the marginal product of the first worker?
A)$200
B)$400
C)$500
D)$700

Quizplus · Accepted Answer

The value of the marginal product of the first worker is calculated by multiplying the marginal product of labor (the increase in output from hiring the first worker, which is 200 cupcakes) by the price of each cupcake ($3). Thus, 200 cupcakes * $3 = $600. However, there seems to be a mistake in the provided choices, as none of them correctly matches the calculated value of $600. Given the options, the closest correct approach to answering based on the provided choices would be to assume a typo or mistake in the question or choices.

Table 18-6 Consider the Following Daily Production Data for MadeFromScratch

Table 18-6
Consider the Following Daily Production Data for MadeFromScratch