Refer to the table below If the competitive price of the product produced by the labor is equal to $2, what is the value of the marginal product of the fifth unit of labor? a) $12 b) $2 c) $24 d) $6 e) $10 Units of Labor Marginal Product of Labor (MPL) 1 24 2 21 3 18 4 15 5 12 6 9 7 6 8 3

Economics Dec 15, 2020

Refer to the table below If the competitive price of the product produced by the labor is equal to $2, what is the value of the marginal product of the fifth unit of labor?

a) $12

b) $2

c) $24

d) $6

e) $10

Units of Labor	Marginal Product of Labor (MPL)
1	24
2	21
3	18
4	15
5	12
6	9
7	6
8	3

Expert Solution

The correct answer is Option c.) $24.

The value of the marginal product is computed by multiplying the price with the marginal product of labor.

Based on the table, the value of the marginal product of labor of the fifth unit is equal to the

= price * marginal product of the 5th unit of labor

= $2 * 12

= $24

So, the correct answer is Option c. $24.

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