Question ·Bottom of Form XYZ restaurant sells donuts at $2 per unit. It uses 5 units of capital and employs labor in the short run to increase production. Complete the following table and use that information to answer the following questions. K L Q MPL VML 5 0 0 0   5 1 50 50 100 ----- 2 125   ------- 5 3 225 100   a.    What is the Marginal Product of Labor for the 2nd worker? Explain b.    What is the VMPL for the 2nd worker?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Week 6: Production Process

 

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·Bottom of Form

XYZ restaurant sells donuts at $2 per unit. It uses 5 units of capital and employs labor in the short run to increase production. Complete the following table and use that information to answer the following questions.

K

L

Q

MPL

VML

5

0

0

0

 

5

1

50

50

100

-----

2

125

 

-------

5

3

225

100

 

a.    What is the Marginal Product of Labor for the 2nd worker?

Explain

b.    What is the VMPL for the 2nd worker?

Explain.

 

 

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