Use the following to answer questions:
-(Table: Total Product of Labor at Debbie's Bakery) Look at the table Total Product of Labor at Debbie's Bakery. Debbie can sell cakes at $10 each. What is the value of the marginal product for the fourth worker?
A) five cakes
B) $50
C) $210
D) 21 cakes

Question

Use the following to answer questions: 
-(Table: Total Product of Labor at Debbie's Bakery) Look at the table Total Product of Labor at Debbie's Bakery. Debbie can sell cakes at $10 each. What is the value of the marginal product for the fourth worker?
A) five cakes 
B) $50 
C) $210 
D) 21 cakes

Quizplus · Accepted Answer

The value of the marginal product is calculated by multiplying the marginal product of labor by the price of the product. If the fourth worker adds 5 cakes, and each cake sells for $10, the value is 5 cakes * $10 = $50.

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