Use the accompanying graph, which depicts Mighty Max's labor demand for his duffle-bag business, to answer the questions that follow.

-Assume that the price of duffle bags is $10.If the marginal product of labor of the sixtieth worker drops by half,what is the value of the marginal product of labor of the sixtieth worker now?
A) $10
B) $15
C) $20
D) $25
E) $30

Question

Use the accompanying graph, which depicts Mighty Max's labor demand for his duffle-bag business, to answer the questions that follow.
 
-Assume that the price of duffle bags is $10.If the marginal product of labor of the sixtieth worker drops by half,what is the value of the marginal product of labor of the sixtieth worker now?
A) $10 
B) $15 
C) $20 
D) $25 
E) $30

Quizplus · Accepted Answer

The marginal product of labor is the additional output produced by an additional worker. If the marginal product of labor of the sixtieth worker drops by half, and the price of each duffle bag is $10, the value of the marginal product of labor will also drop by half. If it was initially $20, it will now be $10.

Use the Accompanying Graph, Which Depicts Mighty Max's Labor Demand