Question

Refer to the following table:

Number of Output Marginal Product Value of Marginal Wage Marginal Profit
workers of Labor Product of Labor
0 0 -- ____ $300 ------
1 300 300 $600 $300 $300
2 500 200 AA $300 $100
3 600 100 $200 $300 BB
4 650 CC DD $300 - $200
1. What is the value for the cell labeled AA?
A. $300
B. $600
C. $400
D. $500
E. $200
2. What is the value for the cell labeled BB?
A. $300
B. $-100
C. $0
D. $100
E. $200
3. What is the value for the cell labeled CC?
A. 650
B. 0
C. 600
D. 50
E. 100
4. What is the value for the cell labeled DD?
A. $0
B. $100
C. $50
D. -$100
E. $300

Answer 1

1. What is the value for the cell labeled AA?

• C. $400

2. What is the value for the cell labeled BB?

• B. -$100

3. What is the value for the cell labeled CC?

• D. 50

4. What is the value for the cell labeled DD?

• B. $100

Step-by-step explanation:

# of output marginal value of wage marginal

workers product marginal profit

of labor prod. of L.

0 0 -- -- $300 --

1 300 300 $600 $300 $300

2 500 200 AA $300 $100

3 600 100 $200 $300 BB

4 650 CC DD $300 -$200

AA = 200 x $2 = $400

BB = $200 - $300 = -$100

CC = 650 - 600 = 50

DD = 50 x $2 = $100