Figure 17-2

Figure 17-2 shows the marginal revenue product for Becca's Baubles, a producer of hand-beaded bracelets.
-Refer to Figure 17-2.If Becca can sell her bracelets at $3 each, what is the marginal product of the 4th worker?

Question

Figure 17-2
  
Figure 17-2 shows the marginal revenue product for Becca's Baubles, a producer of hand-beaded bracelets.
-Refer to Figure 17-2.If Becca can sell her bracelets at $3 each, what is the marginal product of the 4th worker?

Quizplus · Accepted Answer

To find the marginal product of the 4th worker, we look at the change in total revenue as a result of hiring the 4th worker. From the graph, we can see that the marginal revenue product of the 3rd worker is $36 and the marginal revenue product of the 4th worker is $12. This means that by hiring the 4th worker, Becca will be able to produce and sell an additional 12 bracelets, which will increase her total revenue by $36 (since the price is $3 per bracelet). Therefore, the marginal product of the 4th worker is 12 bracelets.

Figure 17-2 Figure 17-2 Shows the Marginal Revenue Product for Becca's Baubles