Pen350
Pen350 Pen350
  • 18-04-2020
  • Business
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Please help! The marginal revenue product of the second worker is

Please help The marginal revenue product of the second worker is class=

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veronicaculs
veronicaculs veronicaculs
  • 18-04-2020

Answer:

The marginal revenue product of the second worker is $150.

Explanation:

  • This is because when we change from 1 worker to 2 workers, the total product increases by 30 (from 20 when there were 1 worker to 50 when there wew 2 workers).  
  • The value of this extra product, considering that the price of every T-shirt  is $5 (marginal revenue of this product) equals [tex]30\times\$5=\$150[/tex].
  • This is additional value in dollars that the company has because incuding an extra employee when it changes from oneto two employees.
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