Alan Jones owns a company that sells life insurance. When he employs 10 salespersons his firm sells $200,000 worth of contracts per week, and when he employs 11 salespersons, total revenue is $210,000. The marginal revenue product of the 11th salesperson is:

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) of the 11th salesperson is the additional revenue generated by hiring one more salesperson. The revenue increased from $200,000 to $210,000, so the MRP is $210,000 - $200,000 = $10,000.

Alan Jones Owns a Company That Sells Life Insurance