Suppose the marginal product of labor is MPL=10 and the cost of each worker is w=50. What is the marginal cost at this point? Hint: In discrete terms, MPL=output from adding an additional worker, w=cost of an additional worker, and MC=cost of an additional unit of output.

Suppose the marginal product of labor is MPL=10 and the cost of each worker is w=50. What is the marginal cost at this point? Hint: In discrete terms, MPL=output from adding an additional worker, w=cost of an additional worker, and MC=cost of an additional unit of output.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Labor Markets And Income Distribution

Section: Chapter Questions

Problem 3SQP

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Suppose the marginal product of labor is MPL=10 and the cost of each worker is w=50. What is the
marginal cost at this point?
Hint: In discrete terms, MPL=output from adding an additional worker, w=cost of an additional
worker, and MC=cost of an additional unit of output.

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