To compute:
The marginal product of the 6th farm worker and the marginal product of the 8th worker, if the price rises to $3 a bunch.
Explanation of Solution
In the labour
If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.
Marginal product:
Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.
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Chapter 19 Solutions
Foundations of Economics - With MyEconLab
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