The Marginal Product of Labour (Measured in Units of Output)for

Multiple Choice

The marginal product of labour (measured in units of output) for New Age Nirvana is given by MPN = A(200 - N) where A measures productivity and N is the number of labour hours used in production.Assume that the price of output is $3 per unit and the demand for labour is 195.What will be the level of productivity if the nominal wage is $30?

A) 5
B) 10
C) 2
D) 12