The Ernie Egg Store hires workers to paint eggs. The store sells the eggs for $3. The marginal revenue product of this store's fifth worker is $21. The marginal product of the fifth worker is
A) 0.14 eggs.
B) 7 eggs.
C) 36 eggs.
D) indeterminate from this information.

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated as the marginal product (MP) of the labor times the price of the output. Given that the MRP of the fifth worker is $21 and the price per egg is $3, we can find the MP by dividing the MRP by the price per egg: $21 / $3 = 7 eggs.

The Ernie Egg Store Hires Workers to Paint Eggs