00:01
So here what do we know? we know the quantity is equal to 4 ,000.
00:04
We know the labor input is equal to 500.
00:08
We know the marginal cost is equal to 10.
00:11
And we know the wage is equal to 160 and total fixed cost is equal to 100 ,000.
00:19
Now, we want the marginal product of labor, which is the derivative of output with respect to labor or if you like percentage, you know, sort of slopes, it's the change in output with respect to labor.
00:33
Oh, output here i used q.
00:36
Excuse me.
00:37
So we're thinking about if you add one more worker to the firm, how much extra are you getting? what makes this question interesting is that they've given you way too much information.
00:50
You don't need all this stuff.
00:52
What you need to think about is marginal, right? i'm interested in the marginal product of labor.
00:56
What do i know at the margin? well, i know the marginal cost, right? those are the two things that are related to.
01:01
Remember, the marginal cost is equal to the change in cost with respect to the change in output, right? and this is equal to 10...