Use the following to answer questions :
Scenario: The Decision to Hire Labour
Assume that both the product market and the labour market are perfectly competitive.The price of this firm's product is $5.The firm's total product with respect to labour is given in the table that follows. $\begin{array}{llcc}
\hline \text { Quantity } & \
\text { of Labour } & \text { Quantity } \
\text { (workers) } & \text {of Output }\
\hline 0&0\
1 &7\
2 &13\
3&18\
4&21\
\hline
\end{array}$

-(Scenario: The Decision to Hire Labour)Use Scenario: The Decision to Hire Labour.What is the value of the marginal product of the third worker to this firm?
A) $5
B) $25
C) $18
D) $10

Question

Use the following to answer questions :
Scenario: The Decision to Hire Labour
Assume that both the product market and the labour market are perfectly competitive.The price of this firm's product is $5.The firm's total product with respect to labour is given in the table that follows. $\begin{array}{llcc}
 \hline  \text { Quantity } &  \
 \text { of Labour } & \text {  Quantity } \
 \text { (workers)  } & \text {of Output  }\
\hline 0&0\
1 &7\
2 &13\
3&18\
4&21\
\hline
\end{array}$

-(Scenario: The Decision to Hire Labour)Use Scenario: The Decision to Hire Labour.What is the value of the marginal product of the third worker to this firm?
A) $5
B) $25
C) $18
D) $10

Quizplus · Accepted Answer

The marginal product of the third worker is the additional output produced by the third worker, which is 5 units (18 - 13). The value of the marginal product is this additional output multiplied by the price of the product, which is $5. Therefore, 5 units * $5 = $25.

Use the Following to Answer Questions : Scenario: the Decision

Use the Following to Answer Questions :
Scenario: the Decision