The Aire Fresco Ceiling Fan Factory hires workers to make ceiling fans.The factory sells the fans for $50.The marginal revenue product of this factory's sixth worker is $300.The marginal product of the sixth worker is:

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) of the sixth worker is $300. This means that the sixth worker adds $300 to the factory's total revenue by producing ceiling fans.

Since the factory sells each fan for $50, the marginal product (MP) of the sixth worker can be calculated as:

MRP = MP x Price

$300 = MP x $50

MP = 6 ceiling fans

Therefore, the marginal product of the sixth worker is 6 ceiling fans.

The Aire Fresco Ceiling Fan Factory Hires Workers to Make