Refer to the following table to answer the following questions:

-If the price of output falls from $5 to $2,the value of the marginal product of labor of all workers
A) increases.
B) remains unchanged.
C) increases at an increasing rate.
D) decreases at an increasing rate.
E) decreases.

Question

Refer to the following table to answer the following questions:

-If the price of output falls from $5 to $2,the value of the marginal product of labor of all workers
A) increases. 
B) remains unchanged. 
C) increases at an increasing rate. 
D) decreases at an increasing rate. 
E) decreases.

Quizplus · Accepted Answer

According to the table, when the price of output falls from $5 to $2, the marginal product of labor decreases from 60 to 20. Therefore, the value of the marginal product of labor also decreases, indicating that option E is correct.

Refer to the Following Table to Answer the Following Questions