A competitive firm sells its output for $30 per unit.The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day.The firm pays its workers a wage of $150 per day.For the 11th worker,the value of the marginal product of labor is

Question

Quizplus · Accepted Answer

The value of the marginal product of labor (VMPL) is calculated as the marginal product of labor (MPL) multiplied by the price of the output (P). 
For the 10th worker, VMPL = MPL × P = 20 × $30 = $600. 
For the 11th worker, VMPL = MPL × P = 16 × $30 = $480. 
Therefore, the value of the marginal product of labor for the 11th worker is $480.

A Competitive Firm Sells Its Output for $30 Per Unit