Assume the wage rate is £10 per hour. If two workers produce 500 units per hour and three workers produce 720 units per hour, the marginal revenue product of the third worker is

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The marginal revenue product (MRP) of the third worker is calculated by the additional output produced by the third worker multiplied by the wage rate. With two workers, the output is 500 units per hour, and with three workers, it is 720 units per hour. The additional output is 220 units (720 - 500). Assuming each unit is sold at the wage rate (£10), the MRP of the third worker is 220 units * £10 = £2,200.

Assume the Wage Rate Is £10 Per Hour