Question

Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if each is equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1,000 in revenue. Each worker’s equipment costs the worker’s employer $150 per month to rent and each worker toils 40 hours per week for four weeks each month. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?

Answer 1

Answer: $1000

Explanation:

Marginal Revenue Product simply refers to the additional revenue that's gotten when one or more unit of input is used. It is the marginal revenue that us gotten as a result of additional resource.

From the question, we are informed that clearing one acre brings in $1,000 in revenue, therefore the marginal revenue product of hiring one low-skilled worker to clear woodland for one month is $1000