Table 13-2
Adrienne's Premium Boxing Service subcontracts with a chocolate manufacturer to box premium chocolates for their mail order catalogue business.Adrienne rents a small room for $150 a week in the downtown business district that serves as her factory.She can hire workers for $275 a week.Costs are in dollars per week.
-Refer to Table 13-2.What is the marginal product of the fourth worker?
A)40
B)110
C)260
D)275

Question

Table 13-2
Adrienne's Premium Boxing Service subcontracts with a chocolate manufacturer to box premium chocolates for their mail order catalogue business.Adrienne rents a small room for $150 a week in the downtown business district that serves as her factory.She can hire workers for $275 a week.Costs are in dollars per week. 
-Refer to Table 13-2.What is the marginal product of the fourth worker?
A)40 
B)110 
C)260 
D)275

Quizplus · Accepted Answer

The marginal product of the fourth worker is the additional output produced by adding the fourth worker, which is 110. Therefore, the best choice would be to hire the fourth worker since the marginal product is positive and the additional revenue generated from the additional output will exceed the cost of hiring the worker.

Table 13-2 Adrienne's Premium Boxing Service Subcontracts with a Chocolate Manufacturer to Manufacturer