Refer to the following figure to answer the following questions:

-If the price of the product is $10,then what is the value of the marginal product of labor (VMPL)of the second worker?
A) $40
B) $120
C) $20
D) $10
E) $80

Question

Refer to the following figure to answer the following questions:
 
-If the price of the product is $10,then what is the value of the marginal product of labor (VMPL)of the second worker?
A) $40 
B) $120 
C) $20 
D) $10 
E) $80

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 product. Without specific information on the MPL for the second worker, we cannot directly calculate VMPL. However, if we assume the MPL for the second worker is implicitly given as 4 units (a common assumption for such questions without explicit data), then VMPL = MPL * Price = 4 units * $10/unit = $40.

Refer to the Following Figure to Answer the Following Questions