$$\begin{array}{l}
\begin{array} { | c | c | }
\hline \text { Number of Employees } & \text { Total Output } \
\hline 1 & 6 \
\hline 2 & 11 \
\hline 3 & 15 \
\hline 4 & 18 \
\hline 5 & 20 \
\hline
\end{array}\
\text { Table } 16.2
\end{array}$$ Table 16.2 gives the number of oil changes that can be performed at a local oil change business based on the number of employees hired.If the price of an oil change is $20,what is the marginal revenue of the third employee?

Question

$$\begin{array}{l}
\begin{array} { | c | c | } 
\hline \text { Number of Employees } & \text { Total Output } \
\hline 1 & 6 \
\hline 2 & 11 \
\hline 3 & 15 \
\hline 4 & 18 \
\hline 5 & 20 \
\hline
\end{array}\
\text { Table } 16.2
\end{array}$$ Table 16.2 gives the number of oil changes that can be performed at a local oil change business based on the number of employees hired.If the price of an oil change is $20,what is the marginal revenue of the third employee?

Quizplus · Accepted Answer

The marginal revenue of the third employee is the change in total revenue divided by the change in the number of employees. The change in total revenue is $15 - $11 = $4. The change in the number of employees is 3 - 2 = 1. Therefore, the marginal revenue of the third employee is $4 / 1 = $4.

Table 162 Gives the Number of Oil Changes That Can Be