Refer to Figure 18-1. Suppose the firm sells its output for $10 per unit, and it pays each of its workers $400 per week. When the number of workers increases from 4 to 5, the a. marginal revenue is $450 per unit of output, and the marginal cost is $400 per unit of output. b. value of the marginal product of labor is $3,900, and the marginal cost per unit of output is $400. c. value of the marginal product of labor is $450, and the marginal cost per unit of output is about $8.89. d. firm's profit increases.
Refer to Figure 18-1. Suppose the firm sells its output for $10 per unit, and it pays each of its workers $400 per week. When the number of workers increases from 4 to 5, the a. marginal revenue is $450 per unit of output, and the marginal cost is $400 per unit of output. b. value of the marginal product of labor is $3,900, and the marginal cost per unit of output is $400. c. value of the marginal product of labor is $450, and the marginal cost per unit of output is about $8.89. d. firm's profit increases.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Refer to Figure 18-1. Suppose the firm sells its output for $10 per unit, and it pays each of its workers $400 per week. When the number of workers increases from 4 to 5, the
a. marginal revenue is $450 per unit of output, and the marginal cost is $400 per unit of output.
b. value of the marginal product of labor is $3,900, and the marginal cost per unit of output is $400.
c. value of the marginal product of labor is $450, and the marginal cost per unit of output is about $8.89.
d. firm's profit increases.
Please explain why the answer is c.
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