Assume that the product price is $4 per unit and that the hourly wage for workers is $12. Neither price nor wage changes with output. In Table 30.1, the contribution to total revenue of the fourth worker hired is

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The fourth worker would produce 40 units per hour (10 units per worker), resulting in a total revenue of $160 (40 units x $4 per unit). The additional cost of hiring one more worker is $12, since the hourly wage is constant. Therefore, the contribution to total revenue of the fourth worker hired is $16 ($160 - $12 x 4 workers = $112).

Assume That the Product Price Is $4 Per Unit and That