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Vera_Pavlovna [14]
3 years ago
9

A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two worker

s are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. The marginal revenue product of the second worker is
Business
1 answer:
adelina 88 [10]3 years ago
6 0

The marginal revenue product of second worker is <u>$24 </u>.

<u>Explanation</u>:

The marginal revenue product measures the amount by which the addition of one more worker increases a firm's total revenue.

<em><u>Given</u></em>:  

Total product produced by first worker- 24

Total product produced by two workers- 32

Total product produced by three workers- 37

Total product produced by four workers- 40

Cost of one product- $3

Wage of a worker- $13

Marginal revenue product of second worker=<u> $24 </u>

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