Use the following information to answer the following questions:
Mickey L.Douglas,owner of MLD Incorporated,knows that the marginal product of labor (MPL)for his workers can be defined as follows:
MPL = 32 - L
The total output a given level of workers can produce is found as:
Q = 32L - L 2
He also knows that the price of his output is $3.His profits can be found as:
Profit = (P * Q)- (W * L)
-What wage would be required to allow Mickey to hire the twenty-fifth worker?
A) $3
B) $7
C) $21
D) $125
E) $25

Question

Use the following information to answer the following questions:
Mickey L.Douglas,owner of MLD Incorporated,knows that the marginal product of labor (MPL)for his workers can be defined as follows:
MPL = 32 - L
The total output a given level of workers can produce is found as:
Q = 32L -  L 2 
He also knows that the price of his output is $3.His profits can be found as:
Profit = (P * Q)- (W * L)
-What wage would be required to allow Mickey to hire the twenty-fifth worker?
A) $3 
B) $7 
C) $21 
D) $125 
E) $25

Quizplus · Accepted Answer

The marginal product of labor is the additional output produced by the last worker hired. In this case, the marginal product of labor is 21 units of output. Therefore, the wage that would be required to allow Mickey to hire the twenty-fifth worker is $21.

Use the Following Information to Answer the Following Questions