When Labor input is 250 billion hours, GDP is 20,000 billion dollars. When Labor input is...

When Labor input is 250 billion hours, GDP is 20,000 billion dollars. When Labor input is 252 billion hours, GDP is 20,120. What is the MPL (Marginal Product of Labor) when L = 250?

20,000 dollars per year

120 dollars per hour

60 thousand dollars per year

60 dollars per hour

30 dollars per hour

Solutions

Expert Solution

Marginal product of labor = increase in GDP / Increase in labor hours

= (20120 - 20000)billion / (252-250)billion

= 120/2

= 60

Thus, the answer is (c) 60 dollars per hour

Rahul Sunny answered 1 year ago

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