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Given the table below, how many hours of labor should be hired to maximize profits when market...

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Given the table below, how many hours of labor should be hired to maximize profits when market price is $2 and wage rate is $10 per hour?

Labor (hour) Marginal Product of Labor
1 15
2 20
3 10
4 5
5 1

Marginal Product of labor:

Marginal product of labor is the additional unit of output which is produced with the employment of an additional unit of labor. It is the change in the output with respect to the change in the labor input.

{eq}MP_l = dTP/dL {/eq},

TP is the total product and

L is the number of labors employed in the production process.

Answer and Explanation: 1

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Labor (hour) Marginal Product of Labor Total cost Marginal revenue product of labor Marginal Cost
1 15 103010
2 20 204010
3 10 302010
4* 5*...

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Marginal Product of Labor: Definition, Formula & Example

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Chapter 3 / Lesson 49
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Understand the meaning of marginal product of labor. Learn the marginal product of labor (MPL) formula, its significance, and how to calculate MPL with examples.


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