Question

If the price of output is $5, the value of the marginal product of labor of the third worker is:

Number of workers Output

2 30

3 38

4 42

5 44

	a.	$8.
	b.	$30.
	c.	$40.
	d.	$38..

Answer 1

Ans:

Option C

value of the marginal product of labor of the third worker = $40

Marginal product of labor is the additional output resulting from employing an additional unit of labor.

Marginal product of labor = change in total output / change in labor

Table showing marginal product of labor

Number of workers	Output	Marginal product of labor	Value of the marginal product of labor = Marginal product of labor * price
2	30	30	$150
3	38	8	$40
4	42	4	$20
5	44	2	$10

Hence the value of the marginal product of labor of the third worker is $40.