Figure 10.2 Figure 10.2 shows the marginal revenue product for Becca's Baubles, a producer of hand-beaded bracelets.
-Refer to Figure 10.2 If Becca can sell her bracelets at $3 each,the marginal product of the fourth worker is _________.

Question

Figure 10.2  Figure 10.2 shows the marginal revenue product for Becca's Baubles, a producer of hand-beaded bracelets.
-Refer to Figure 10.2 If Becca can sell her bracelets at $3 each,the marginal product of the fourth worker is _________.

Quizplus · Accepted Answer

At a price of $3 per bracelet, the marginal revenue product (MRP) of the fourth worker is equal to the additional revenue generated by hiring one more worker. Looking at the graph in Figure 10.2, the MRP curve intersects the price line at 12 units of labor, which means that the fourth worker (the 12th unit of labor) contributes a marginal product of 12 bracelets. Therefore, the answer is B, 12 bracelets.

Figure 102 Figure 10