Two workers produce 100 units of output that sell for $4.00 each. Three workers produce 150 units of output that sell for $3.20 each.
-The marginal revenue product of the third worker is:

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) of the third worker is calculated by finding the change in total revenue when the third worker is added. Initially, with two workers, the revenue is 100 units * $4.00 = $400. With three workers, the revenue is 150 units * $3.20 = $480. The change in revenue is $480 - $400 = $80, which is the MRP of the third worker.

Two Workers Produce 100 Units of Output That Sell for $4.00