Use the accompanying graph, which depicts Mighty Max's labor demand for his duffle-bag business, to answer the questions that follow.

-Assume that the price per duffle bag rises from $10 to $20.What is the value of the marginal product of labor of the twentieth worker?
A) $30
B) $40
C) $50
D) $60
E) $70

Question

Use the accompanying graph, which depicts Mighty Max's labor demand for his duffle-bag business, to answer the questions that follow.
 
-Assume that the price per duffle bag rises from $10 to $20.What is the value of the marginal product of labor of the twentieth worker?
A) $30 
B) $40 
C) $50 
D) $60 
E) $70

Quizplus · Accepted Answer

The marginal product of labor is the additional output produced by an additional worker. If the price per duffle bag rises from $10 to $20, the value of the marginal product of labor is calculated by multiplying the marginal product of the worker by the new price. Assuming the marginal product of the twentieth worker is 3 bags, the value is 3 bags * $20 = $60.

Use the Accompanying Graph, Which Depicts Mighty Max's Labor Demand