Asked by
daniel ondera
on Dec 17, 2024
Verified
A competitive firm sells its output for $60 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day. The firm pays its workers a wage of $150 per day. For the 11th worker, the value of the marginal product of labor is
A) $480.
B) $960.
C) $1,200.
D) $2,400.
Marginal Product
The additional output resulting from the use of one more unit of a production input, holding other inputs constant.
Wage
A wage is the compensation paid to employees for their labor, typically calculated on an hourly, daily, or piecework basis.
Output
The quantity of goods or services produced in a given period by an individual, firm, or country.
- Estimate the economic value of labor's incremental output.
Verified Answer
SS
Learning Objectives
- Estimate the economic value of labor's incremental output.