Table 18-3

-Refer to Table 18-3.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $2.50 in a competitive market.What is the marginal revenue product of the fourth worker?

Question

Table 18-3
 
-Refer to Table 18-3.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $2.50 in a competitive market.What is the marginal revenue product of the fourth worker?

Quizplus · Accepted Answer

The marginal revenue product of the fourth worker is the additional revenue generated by hiring the fourth worker. The fourth worker produces 100 baseballs, which sell for $2.50 each, generating $250 in revenue. The marginal revenue product is therefore $250.

Table 18-3 -Refer to Table 18-3.This Table Describes the Number of Baseballs