Assume that a competitive firm sells its product for $5 per unit.The firm wants to increase the number of workers employed from 100 to 101 and expects output to rise from 400 units to 410 units.The firm pays a constant wage of $8 per hour to all of its workers.Based on the given information,the marginal value product of the 101st worker is _____.
A)$5
B)$10
C)$50
D)$80

Question

Quizplus · Accepted Answer

The marginal value product (MVP) of the 101st worker is calculated by the increase in output (10 units) multiplied by the price per unit ($5), which equals $50.

Assume That a Competitive Firm Sells Its Product for $5