Suppose two workers can harvest $46 worth of apples per day and three workers can harvest $60 worth. On the basis of this information, we can say that the
A) marginal product of each of the first two workers is 23.
B) marginal revenue product of each of the first two workers is $23.
C) marginal revenue product of the third worker is $14.
D) third worker should not be hired.

Question

Quizplus · Accepted Answer

To find the marginal revenue product of each worker, we need to first determine the total product of two workers and three workers. Let x represent the marginal product of each of the first two workers, and y represent the marginal product of the third worker.

2x = $46
x = $23

3x + y = $60
Substitute x with $23
3($23) + y = $60
y = $14

Therefore, the marginal revenue product of the third worker is $14. Hiring the third worker would increase total revenue by $14, so it would be beneficial to hire them.

Suppose Two Workers Can Harvest $46 Worth of Apples Per