Questions are based on the data in the following table. Assume that the labor market is perfectly competitive.

$\begin{array}{cc}\begin{array}{cc}\text { Labor } & \text { Output } \\\hline0& 0 \\1 & 15 \\2 & 29 \\3 & 42 \\4 & 54 \\5 & 65 \\6 & 75\end{array}\begin{array}{c}\text { Price }\left(D_{1}\right) \\\hline\$ 10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\\end{array}\begin{array}{c}\text { Price }\left(\mathrm{D}_{2}\right) \\\hline \$ 10.00 \\9.50 \\9.00 \\8.50 \\7.50 \\6.50 \\5.50\end{array}\end{array}$
-Suppose the firm's product demand is given by the column labeled D₁.The value of the marginal product of the fourth worker is:

Question

Questions are based on the data in the following table. Assume that the labor market is perfectly competitive.

\begin{array}{cc}\begin{array}{cc}\text { Labor } & \text { Output } \\\hline0& 0 \\1 & 15 \\2 & 29 \\3 & 42 \\4 & 54 \\5 & 65 \\6 & 75\end{array}\begin{array}{c}\text { Price }\left(D_{1}\right) \\\hline\$ 10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\10.00 \\\end{array}\begin{array}{c}\text { Price }\left(\mathrm{D}_{2}\right) \\\hline \$ 10.00 \\9.50 \\9.00 \\8.50 \\7.50 \\6.50 \\5.50\end{array}\end{array}

-Suppose the firm's product demand is given by the column labeled D₁.The value of the marginal product of the fourth worker is:

Quizplus · Accepted Answer

The value of the marginal product (VMP) of the fourth worker is calculated as the additional output produced by the fourth worker multiplied by the price of the product. From the table, the additional output produced by the fourth worker (going from 3 to 4 workers) is $54 - 42 = 12$ units. Given that the price (D1) is constant at $10.00, the VMP is $12 \times $10.00 = $120$.

Questions Are Based on the Data in the Following