BM: TASK PERFORMAMNCE

LABOR MARKET PROBLEM SOLVING

You are an owner of a honey dew farm, and you are about to hire for labor services. Consider the Price
of Output is Php 15.00, and the Wage is Php 402.00

Labor Output Marginal Product of Value of Marginal product Wage Marginal Profit
(L) (Q) Labor of Labor
0 0 0 0 0 0
1 95 95 1,425 402 1,023
2 180 85 1,275 402 873
3 250 70 1,050 402 648
4 310 60 900 402 498
5 350 40 600 402 198
6 380 30 450 402 48

7 400 20 300 402 -102

8 410 10 150 402 -252

9 415 5 75 402 -327

10 420 5 75 402 -327

WHERE: Q1 = Is the previews OUTPUT

Q2= Is the present OUTPUT
L1= Is the previews LABOR
L2= is the present LABOR
P= Is the given Price Php 15.00
W= is the given Wage Php 402.00
= Change in
FORMULA:
Marginal product of Labor (MPL = Q / L) MARGINAL PROFIT

MPL = (Q2 – Q1) = Q ( MP = VMPL - W )

(L2- L1) L

Value of marginal product of labor

VMPL = P x MPL
SOLUTIONS:

NO. 1 MPL = (95 – 0) = 95 MPL = 95 VMPL = 15 x 95 VMPL = 1,425 MP = 1,425 – 402 MP =1,023
(1 – 0) 1
NO.2 MPL = (180 – 95)= 85 MPL = 85 VMPL = 15 x 85 VMPL = 1,275 MP = 1,275 – 402 MP = 873
(2 – 1) 1
NO.3 MPL = (250 – 180) = 70 MPL = 70 VMPL = 15 x 70 VMPL = 1,050 MP = 1,050 – 402 MP = 648
(3 – 2 ) 1
NO.4 MPL = (310 – 250) = 60 MPL = 60 VMPL = 15 x 60 VMPL = 900 MP = 900 – 402 MP = 498
(4 – 3) 1
NO.5 MPL = (350 – 310 ) = 40 MPL = 40 VMPL = 15 x 40 VMPL = 600 MP = 600 – 402 MP = 198
(5–4) 1
NO.6 MPL = (380 – 350) = 30 MPL = 30 VMPL = 15 x 30 VMPL = 450 MP = 450 – 402 MP = 48
(6–5) 1
NO.7 MPL = (400 – 380) = 20 MPL = 20 VMPL = 15 x 20 VMPL = 300 MP = 300 – 402 MP = -102
(7 – 6 ) 1
NO.8 MPL = ( 410 – 400 ) = 10 MPL = 10 VMPL = 15 x 10 VMPL = 150 MP = 150 – 402 MP = - 252
(8–7) 1
NO.9 MPL = ( 415 – 410 ) = 5 MPL = 5 VMPL = 15 x 5 VMPL = 75 MP = 75 – 402 MP = - 327
(9 – 8 ) 1
NO.10 MPL = (420 – 415) = 5 MPL = 5 VMPL = 15 x 5 VMPL = 75 MP = 75 – 402 MP = - 327
( 10 – 9 ) 1