A perfectly competitive firm sells its output at Rs 15 per unit. The marginal product of the 6th hour of labour is 4 units. The value of marginal product of the 6th hour of labour is:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs 60
Given:
Price of the good = Rs 15 per unit
Marginal product of the 6th hour of labour, MPL = 4 units
For a perfectly competitive firm, marginal revenue equals the price. So the value of marginal product of labour is the price times MPL.
\( VMPL = P \times MPL \)
\( VMPL = 15 \times 4 \)
\( VMPL = 60 \)
The VMPL of the 6th hour is Rs 60.
NCERT (2026-27): “Wage Determination in Labour Market … Since we are dealing with a perfectly competitive firm, marginal revenue is equal to the price of the commoditya and hence marginal revenue product of labour in this case is equal to the value of marginal product of labour (VMPL).” Glossary: “Value of marginal product (VMP) of a factor – Price times Marginal Product of the factor.” |