question archive If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes, the: A
If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes, the: A
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If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes, the:
A. marginal revenue product of each worker is $25.
B. marginal revenue product of the first worker is $20.
C. marginal revenue product of the second worker is $20.
D. data given do not permit the determination of the marginal revenue product of either worker.
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Answer is option c:
marginal revenue product of the second worker is $20.
Marginal revenue is the revenue gained by producing one additional unit or service. In the given case when two workers work together the revenue increases by $20. Hence the marginal revenue product of second worker is $20.
