Figure 1 -Refer to Figure 1

question 32

Multiple Choice

Figure 1
$$\begin{array} { c c c c } \begin{array} { c } \text { Labour (number of } \\\text { workers) }\end{array} & \begin{array} { c } \text { Output } \\\text { per hour }\end{array} & \begin{array} { c } \text { Marginal Product } \\\text { of Labour (MPL) }\end{array} & \text { Value of MPL } \\\hline 0 & 0 & \\1 & 5 & \\2 & 9 & \\3 & 12 & \\4 & 14 & \\5 & 15 &\end{array}$$
-Refer to Figure 1. If the price of output is R40 per unit, what is the value of the marginal product of labour as the firm moves from using four workers to using five workers?

• A) R40
• B) R80
• C) R120
• D) R560
• E) R600

---

Definitions:

Labor Cost

The total expenditure incurred by an employer on behalf of employees, including wages, benefits, and taxes.

Holding Cost

The expenses associated with storing unsold inventory, including warehousing, insurance, depreciation, and opportunity costs.

Lot Size

The quantity of a particular product that is produced or purchased in a single batch.

Setup

The process of preparing or configuring equipment or a work area for a new production run or task, which can involve adjustments and changeovers.