Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day.If radios can be sold for $10 each,the value of marginal product of the ninth worker is

Question

Quizplus · Accepted Answer

To find the value of marginal product of the ninth worker, we need to calculate the additional revenue generated by adding the ninth worker.

The marginal product of the ninth worker is the difference between the total product of nine workers (90 radios) and the total product of eight workers (70 radios), which is 20 radios.

Therefore, the additional revenue generated by adding the ninth worker is 20 radios x $10/radio = $200.

Hence, the answer is C.

Suppose That Eight Workers Can Manufacture 70 Radios Per Day