Suppose two workers can harvest $46 and three workers can harvest $60 worth of apples per day.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 calculate the marginal revenue product (MRP) of each worker, we need to find the additional revenue generated by hiring an additional worker. 
For the first worker, MRP = Total product of two workers - Total product of one worker = $46 - $0 = $46
For the second worker, MRP = Total product of three workers - Total product of two workers = $60 - $46 = $14
For the third worker, we do not have enough information to calculate MRP. 
Therefore, the best choice is to hire the first two workers and not hire the third worker as their MRP is only $14.

Suppose Two Workers Can Harvest $46 and Three Workers Can