Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day. If radios can be sold for $20 each, the value of marginal product of the ninth worker is
A)20 radios.
B)90 radios.
C)$200.
D)$400.

Question

Quizplus · Accepted Answer

The marginal product of the ninth worker is the additional radios produced by the ninth worker, which is 90 - 70 = 20 radios. The value of the marginal product is 20 radios * $20 = $400.

Suppose That Eight Workers Can Manufacture 70 Radios Per Day