As a result of increasing its workforce from 9 workers to 10 workers, a firm's total revenue per day increases from $60,000 to $60,250 and its total cost per day increases from $58,500 to $58,700. The marginal profit of the 10^th worker is A)-$50. B)$50. C)$200. D)$250.

Question

Quizplus · Accepted Answer

The marginal profit of the 10th worker is calculated by subtracting the increase in total cost from the increase in total revenue: $60,250 - $60,000 = $250 (increase in revenue) and $58,700 - $58,500 = $200 (increase in cost). Therefore, the marginal profit is $250 - $200 = $50.

As a Result of Increasing Its Workforce from 9 Workers