A pizza shop's marginal product of labor, measured as the number of pizzas delivered per week, is MP_L = 55 - 5L, where L is the number of workers. The average price of a pizza in this highly competitive market is $10. The shop can hire workers at the market wage of $300 per week. The marginal product of labor for the fourth worker is ____.

Question

Quizplus · Accepted Answer

The marginal product of labor for the fourth worker is calculated by substituting L = 4 into the equation MP_L = 55 - 5L, which gives MP_L = 55 - 5(4) = 35.

A Pizza Shop's Marginal Product of Labor, Measured as the Number