Question
4. VMP PROBLEM: Marnie's Malasada's has the production function per day shown in the accompanying table. The daily wage rate for each worker is $100.
4. VMP PROBLEM: Marnie's Malasada's has the production function per day shown in the accompanying table. The daily wage rate for each worker is $100. Each malasada sells for $2.
| Qty of Labor | Qty of Malasadas | MP | VMP |
| 0 | - | - | - |
| 1 | 90 | 90 | 180 |
| 2 | 150 | 60 | 120 |
| 3 | 190 | 40 | 80 |
| 4 | 220 | 30 | 60 |
| 5 | 240 | 20 | 40 |
A. Calculate the marginal product of labor for each worker and the value of the marginal product of labor per worker. Add columns to the table above showing the MP and VMP.
B. Draw the value of the marginal product of labor curve. Use your diagram to determine how many workers Marnie should employ.
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Essentials of Accounting for Governmental and Not-for-Profit Organizations
Authors: Paul A. Copley
10th Edition
007352705X, 978-0073527055
