Use the table below to answer the following questions.
Table 18.2.1

-Refer to Table 18.2.1. If the firm can sell all the output it wants for the price of $5 a unit, what is the value of marginal product of the 6th worker?

Question

Use the table below to answer the following questions.
Table 18.2.1
 
-Refer to Table 18.2.1. If the firm can sell all the output it wants for the price of $5 a unit, what is the value of marginal product of the 6th worker?

Quizplus · Accepted Answer

To calculate the value of marginal product, we need to calculate the additional output produced by the 6th worker and multiply it by the price at which the firm can sell the output. 
From the table, we can see that the total product increases from 90 units to 100 units when the 6th worker is hired. Therefore, the additional output produced by the 6th worker is 10 units. Since the price at which the firm can sell the output is $5, the value of marginal product of the 6th worker is 10*5=$50. 
Therefore, the correct answer is C. 
Option A is incorrect because it is the value of total product and not the value of marginal product. 
Option B is incorrect because the value of marginal product cannot be negative. 
Option D is incorrect because it is not the value of marginal product. 
Option E is incorrect because it is not the value of marginal product.

Use the Table Below to Answer the Following Questions