A firm can sell its output for $40 per unit.When the firm increases its labour force from 4 workers to 5 workers,its output increases from 15 to 17 units.The value of marginal product of the 5th worker is

Question

Quizplus · Accepted Answer

The value of the marginal product of the 5th worker is calculated by multiplying the marginal product (the increase in output due to adding the 5th worker) by the price per unit. The increase in output is 2 units (from 15 to 17 units), and the price per unit is $40. Therefore, the value of the marginal product of the 5th worker is 2 units * $40/unit = $80.

A Firm Can Sell Its Output for $40 Per Unit