Asked by Courtney Coffman on Jun 09, 2024
Verified
A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired, 32 when two workers are hired, 37 when three are hired, and 40 when four are hired. The farmer's product sells for $2.50 per unit, and the wage rate is $19 per worker. The marginal product of the first worker is
A) 19
B) 1
C) 60
D) 24
Marginal Product
The incremental output produced by adding one more unit of a specific input while holding other inputs constant.
Wage Rate
The wage rate is the amount of money paid for a specific quantity of labor or service, often expressed per hour, day, or piece.
- Attain an understanding of the Marginal Revenue Product (MRP) concept and its relevance in the context of hiring.
Verified Answer
MJ
Megan JohnsonJun 09, 2024
Final Answer :
D
Explanation :
The marginal product of the first worker is the increase in total product from hiring the first worker, which is 24 units since there were no units produced before the first worker was hired.
Learning Objectives
- Attain an understanding of the Marginal Revenue Product (MRP) concept and its relevance in the context of hiring.