Asked by Sandy Babbie on Jun 08, 2024
Verified
Suppose two workers can harvest $46 worth of apples per day and three workers can harvest $60 worth. On the basis of this information, we can say that the
A) marginal product of each of the first two workers is 23.
B) marginal revenue product of each of the first two workers is $23.
C) marginal revenue product of the third worker is $14.
D) third worker should not be hired.
Marginal Revenue Product
The additional revenue generated by one more unit of input, such as labor or capital, in the production process.
Marginal Product
The increase in output that arises from an additional unit of input, holding all other inputs constant.
- Figure out the marginal revenue product (MRP) and identify its contribution to framing employment levels in sectors experiencing competition.
Verified Answer
SN
Sarra NasimJun 12, 2024
Final Answer :
C
Explanation :
The marginal revenue product (MRP) of the third worker is the additional revenue generated by adding the third worker, which is $60 - $46 = $14. This means the third worker adds $14 worth of apples to the total harvest, making option C correct.
Learning Objectives
- Figure out the marginal revenue product (MRP) and identify its contribution to framing employment levels in sectors experiencing competition.