Martin's Magical Milk Farm produces cow's milk and sells it to a local store for $2.20 per gallon. Agricultural workers in the area are paid a fixed wage rate of $125 per day. Use this information and the information in the table to answer the questions. Assume that the milk farm is profit maximizing. 0 workers, 0 gallons.
1 worker, 100 gallons.
2 workers, 195 gallons.
3 workers, 275 gallons.
4 workers, 325 gallons.
5 workers, 350 gallons.
6 workers, 370 gallons. Question 1: what is the marginal product of labor (MPL) for employing a third worker? MPL3= ___ gallons. Question 2: what is the value of the marginal product of labor (VMPL) for employing a sixth worker? VMPL6=$___. Question 3: how many employees should Martin's farm employ? ___ employees. Question 4: how many employees should Martin's farm employ if the price he received per gallon of milk rose to $2.50? ___ employees.