Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 18 - Part VI - The Markets for the Factors of Production - Problems and Applications - Page 392: 6

Answer

Value of marginal product of labor: 6 dollars worker's marginal product: 2 sandwiches

Work Step by Step

Since he is maximizing his profit, the workers he hires have a marginal product of labor equal to their wage. Thus, the value of the marginal product of labor is 6 dollars. The value of the marginal product of labor is the same as the price of the item, multiplied by the marginal product. $VMPL = price * MP$ $6 = 3 * MP$ $6/3 = 3*MP/3$ $2 = MP$
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