Answer:
The answer is option a). For the 11th worker, the marginal profit is $600.
Explanation:
<em>Step 1: Determine the initial profit for the 10 workers as shown;</em>
initial profit=revenue from sales-cost of labor
where;
revenue from sales=sale per unit×number of units
revenue from sales=800×20=$16,000
cost of labor=cost per unit×number of workers
cost of labor=1,000×10=$10,000
replacing;
initial profit=16,000-10,000=$6,000
<em>Step 2: Determine the final profit for the 10 workers as shown;</em>
final profit=revenue from sales-cost of labor
where;
revenue from sales=sale per unit×number of units
revenue from sales=800×22=$17,600
cost of labor=cost per unit×number of workers
cost of labor=1,000×11=$11,000
replacing;
final profit=17,600-11,000=$6,600
<em>Step 3: Determine the marginal profit as shown;</em>
marginal profit=final profit-initial profit
where;
final profit=$6,600
initial profit=$6,000
replacing;
marginal profit=6,600-6,000=$600
The marginal profit for the 11th worker=$600
