A competitive firm sells its output for $25 per unit.The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day.The firm pays its workers a wage of $160 per day.For the 10th worker,the value of the marginal product of labor is

Question

Quizplus · Accepted Answer

The value of the marginal product of labor for the 10th worker is the additional revenue generated by the 10th worker, which is the marginal product of the 10th worker multiplied by the price of the output. So, the value of the marginal product of labor for the 10th worker is 10 units of output per day multiplied by $25 per unit, which is $250. Therefore, the best choice is B.

A Competitive Firm Sells Its Output for $25 Per Unit