You have recently secured a position as the manager at a company specializing in the production of a certain product, X. Below is a schedule detailing the weekly total production of product X. Furthermore, assume that each unit of product X sells for $21.84, labor can be hired from a competitive job market for $150 per week, and the cost of each unit of capital is $69.94 per week. Determine the value marginal product (VMPL) of the 7th worker. Labor (L) Capital (K) Output (Q) 0 3 0 1 3 15 2 3 35 3 3 60 4 3 95 5 3 145 6 3 215 7 3 315 8 3 395 9 3 440 10 3 460 11 3 475 12 3 485

You have recently secured a position as the manager at a company specializing in the production of a certain product, X. Below is a schedule detailing the weekly total production of product X. Furthermore, assume that each unit of product X sells for $21.84, labor can be hired from a competitive job market for $150 per week, and the cost of each unit of capital is $69.94 per week. Determine the value marginal product (VMPL) of the 7th worker. Labor (L) Capital (K) Output (Q) 0 3 0 1 3 15 2 3 35 3 3 60 4 3 95 5 3 145 6 3 215 7 3 315 8 3 395 9 3 440 10 3 460 11 3 475 12 3 485

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter29: Resource Markets

Section: Chapter Questions

Problem 7E

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