Number of worker (per hour) total output(per hour) marginal physical product (output per worker) total revenue(dollars per hour) marginal revenue product (dollars per worker)

1 4 ...... ______ ........

2 10 ______ ______ ______

3 15 ______ ______ ______

4 19 ______ ______ ______

5 22 ______ ______ ______

Table 30.3 Assume that the product price is $4 per unit and that the hourly wage for workers is $12.Neither price nor wage changes with output.In Table 30.3, the contribution to total revenue of the fourth worker hired is A) $76 per hour. B) $16 per hour. C) $4 per hour. D) $12 per hour.

Question

Number of worker (per hour)	total output(per hour)	marginal physical product (output per worker)	total revenue(dollars per hour)	marginal revenue product (dollars per worker)
1	4	......	______	........
2	10	______	______	______
3	15	______	______	______
4	19	______	______	______
5	22	______	______	______

Table 30.3 Assume that the product price is $4 per unit and that the hourly wage for workers is $12.Neither price nor wage changes with output.In Table 30.3, the contribution to total revenue of the fourth worker hired is A) $76 per hour. B) $16 per hour. C) $4 per hour. D) $12 per hour.

Quizplus · Accepted Answer

The contribution to total revenue of a worker is the marginal product of labor multiplied by the price of the product.

In this case, assuming that the marginal product of labor is as in Table 30.3, the contribution to total revenue of the fourth worker hired is:
(12 units - 8 units) x $4 = 16 units x $4 = $64

Dividing this by the number of hours worked by the fourth worker (4), we get:
$64/4 = $16 per hour