The following table shows the total number of pizzas produced by 7 workers.
Table 16-1 $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Number of } \
\text { workers }
\end{array} & \begin{array} { c }
\text { Total number of pizzas } \
\text { produced per day }
\end{array} \
\hline 0 & 0 \
\hline 1 & 6 \
\hline 2 & 13 \
\hline 3 & 18 \
\hline 4 & 21 \
\hline 5 & 23 \
\hline 6 & 22 \
\hline 7 & 20 \
\hline
\end{array}$$
-Refer to Table 16-1.If the pizza industry is competitive and the price of a pizza is $10,then which of the following is correct?
A)The total revenue from the sale of 4 pizzas is $30.
B)The marginal value product of the fifth worker is $20.
C)The marginal product of the fourth worker is 2 pizzas.
D)The marginal revenue from selling the fifth pizza is $-10.

Question

The following table shows the total number of pizzas produced by 7 workers.
Table 16-1 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Number of } \
\text { workers }
\end{array} & \begin{array} { c } 
\text { Total number of pizzas } \
\text { produced per day }
\end{array} \
\hline 0 & 0 \
\hline 1 & 6 \
\hline 2 & 13 \
\hline 3 & 18 \
\hline 4 & 21 \
\hline 5 & 23 \
\hline 6 & 22 \
\hline 7 & 20 \
\hline
\end{array}$$
-Refer to Table 16-1.If the pizza industry is competitive and the price of a pizza is $10,then which of the following is correct?
A)The total revenue from the sale of 4 pizzas is $30.
B)The marginal value product of the fifth worker is $20.
C)The marginal product of the fourth worker is 2 pizzas.
D)The marginal revenue from selling the fifth pizza is $-10.

Quizplus · Accepted Answer

The marginal value product of the fifth worker is calculated by the change in total revenue from hiring the fifth worker, which is (23 pizzas - 21 pizzas) * $10 = $20.

The Following Table Shows the Total Number of Pizzas Produced