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XYZ restaurant sells donuts at $2 per unit . It uses 5 units of capital and employs labor in the short run to increase production.
XYZ restaurant sells donuts at $2 per unit. It uses 5 units of capital and employs labor in the short run to increase production. Complete the following table and use that information to answer the following questions.
K | L | Q | MPL | VML |
5 | 0 | 0 | 0 | |
5 | 1 | 50 | 50 | 100 |
----- | 2 | 125 | ------- | |
5 | 3 | 225 | 100 |
- What is the Marginal Product of Labor for the 2nd worker?
Explain
- What is the VMPL for the 2nd worker?
Explain.
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