If a chair can be sold for $20 and it takes a worker two hours to make a chair,the marginal revenue product of this worker is
A)$5 per hour.
B)$10 per hour.
C)$20 per hour.
D)$2 per hour.

Question

Quizplus · Accepted Answer

The marginal revenue product of a worker is the additional revenue generated by the output produced by that worker. Since the chair sells for $20 and it takes the worker two hours to make it, the marginal revenue product is $20 divided by 2 hours, which equals $10 per hour.

If a Chair Can Be Sold for $20 and It