Refer to the Following Figure to Answer the Following Questions

question 144

Multiple Choice

Refer to the following figure to answer the following questions:

-If the price of the product is $10,then what is the value of the marginal product of labor (VMPL) of the second worker?

• A) $40
• B) $120
• C) $20
• D) $10
• E) $80

---

Definitions:

Constant Costs

Costs that remain unchanged regardless of the level of production or activity.

Long-Run Equilibrium

A state in which all firms in a market are making zero economic profit, with no firm having an incentive to enter or exit the industry.

Allocative Efficiency

An economic state where resources are allocated in a way that maximizes the overall utility to society, ensuring that the goods and services produced match consumer preferences.

Minimization

The process or strategy of reducing or keeping to a minimum the size, amount, or degree of something, especially costs or liabilities.