Table 18-10
-Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $2.50 in a competitive market. What is the marginal revenue product of the fourth worker?
A)$200
B)$300
C)$400
D)$500

Question

Table 18-10 
-Refer to Table 18-10. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $2.50 in a competitive market. What is the marginal revenue product of the fourth worker?
A)$200 
B)$300 
C)$400 
D)$500

Quizplus · Accepted Answer

The marginal revenue product of the fourth worker is the additional revenue generated by hiring the fourth worker. The fourth worker produces 100 baseballs per day, which sell for $2.50 each. Therefore, the marginal revenue product of the fourth worker is 100 * $2.50 = $250.

Table 18-10 -Refer to Table 18-10. This Table Describes the Number of the Number