The following table shows the quantity of shaved ice desserts that can be made in one hour based on the number of workers hired. If the price of a shaved ice dessert is $6, what is the marginal revenue product of the third worker?
$\begin{array}{|l|l|l|}
\hline \text { Labor } & \text { Quantity } & M P P_{\mathrm{L}} \
\hline 1 & 6 & 6 \
\hline 2 & 16 & 10 \
\hline 3 & 25 & 9 \
\hline 4 & 32 & 7 \
\hline 5 & 37 & 5 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) of the third worker is calculated by multiplying the marginal physical product (MPP) of the third worker by the price of the product. The MPP of the third worker is 9 (from 16 to 25 shaved ice desserts), and the price of a shaved ice dessert is $6. Therefore, the MRP of the third worker is 9 * $6 = $54.

The Following Table Shows the Quantity of Shaved Ice Desserts