(Table: Total Product of Labor at Suzi's Sandwich Shop) Use Table: Total Product of Labor at Suzi's Sandwich Shop. Suzi can sell sandwiches for $10 each. What is the marginal revenue product of labor for the fourth worker? $$\text { Table: Total Product of Labor at Suzi's Sandwich Shop } \
\begin{array} { | l | l | }
\hline \begin{array} { l }
\text { Quantity of Labor } \
\text { (workers) }
\end{array} & \begin{array} { l }
\text { Total Product of Labor } \
\text { (sandwiches per worker) }
\end{array} \
\hline 0 & 0 \
\hline 1 & 3 \
\hline 2 & 10 \
\hline 3 & 16 \
\hline 4 & 21 \
\hline 5 & 25 \
\hline 6 & 28 \
\hline
\end{array}$$

Question

(Table: Total Product of Labor at Suzi's Sandwich Shop) Use Table: Total Product of Labor at Suzi's Sandwich Shop. Suzi can sell sandwiches for $10 each. What is the marginal revenue product of labor for the fourth worker? $$\text { Table: Total Product of Labor at Suzi's Sandwich Shop } \
\begin{array} { | l | l | } 
\hline \begin{array} { l } 
\text { Quantity of Labor } \
\text { (workers) }
\end{array} & \begin{array} { l } 
\text { Total Product of Labor } \
\text { (sandwiches per worker) }
\end{array} \
\hline 0 & 0 \
\hline 1 & 3 \
\hline 2 & 10 \
\hline 3 & 16 \
\hline 4 & 21 \
\hline 5 & 25 \
\hline 6 & 28 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The marginal revenue product (MRP) of labor for the fourth worker is calculated by finding the additional output produced by the fourth worker and multiplying it by the price at which each unit can be sold. The total product of labor increases from 16 sandwiches with three workers to 21 sandwiches with four workers, an increase of 5 sandwiches. Since each sandwich sells for $10, the MRP for the fourth worker is 5 sandwiches * $10/sandwich = $50.