Use the following graph,which depicts Mighty Max's labor demand for his duffel bag business,to answer the following questions.The labor demand curve shown is calculated based on a duffel bag price of $10.

-Assume that the price of duffel bags is $10.If the marginal product of labor of the sixtieth worker drops by half,what is the value of the marginal product of labor of the sixtieth worker now?
A) $10
B) $15
C) $20
D) $25
E) $30

Question

Use the following graph,which depicts Mighty Max's labor demand for his duffel bag business,to answer the following questions.The labor demand curve shown is calculated based on a duffel bag price of $10.
 
-Assume that the price of duffel bags is $10.If the marginal product of labor of the sixtieth worker drops by half,what is the value of the marginal product of labor of the sixtieth worker now?
A) $10 
B) $15 
C) $20 
D) $25 
E) $30

Quizplus · Accepted Answer

The value of the marginal product of labor (VMPL) is calculated as the marginal product of labor (MPL) times the price of the output. If the MPL of the sixtieth worker drops by half, and assuming it was initially higher, the exact new MPL isn't provided, but the price of the output remains $10. Without knowing the initial MPL, we cannot calculate the exact drop, but the question seems to imply a direct relationship with the price, which remains constant at $10. Thus, the VMPL would be $10, assuming the MPL drop is reflected in the output price directly, which remains unchanged.

Use the Following Graph,which Depicts Mighty Max's Labor Demand for His