When Sam's Scarves uses 2 knitting machines and employs 3 people, total revenue is $330 a day. When Sam's Scarves uses 2 knitting machines and employs 4 people, total revenue is $360 a day. The value of marginal product of the fourth worker is _______.
A) $360
B) $110
C) $90
D) $30

Question

Quizplus · Accepted Answer

The value of the marginal product of the fourth worker is calculated by the increase in total revenue when the fourth worker is added, which is $360 - $330 = $30.

When Sam's Scarves Uses 2 Knitting Machines and Employs 3