question 3

Martin's Magical Milk Farm produces cow's milk and sells it to a local store for $2.20 per gallon, Agricultural workers in the area are paid a fixed wage rate of S125 per day. Use this information and the information in the table to answer the questions, Assume that the milk farm is profit maximizing Workers Quantity of milk per day (gallons) 0 1 100 0 2 195 3 275 4 325 5 350 6 370 What is the marginal product of labor (MPL) for employing a third worker? 80 gallons MPL) = What is the value of the marginal product of labor (VMPL) for employing a sixth worker? 46 VMPLES How many employees should Martin's farm employ? How many employees should Martin's furm employ? 4 employees Incorrect How many employees should Martin's farm employ if the price he received per gallon of milk rose to $2.50? 4 employees