A firm sells pairs of jeans. The market price for a pair of jeans is $30 . With one worker the firm can make 9 pairs of jeans in an hour. With two workers the firm can make 19 pairs of jeans in an hour. What is the marginal revenue product of labor for the second worker?(1 point)

Question

Responses

$270
per hour
270 dollars per hour

$840
per hour
840 dollars per hour

$300
per hour
300 dollars per hour

$570 per hour

Answer 1

To calculate the marginal revenue product of labor (MRP) for the second worker, we need to determine the additional output produced by that worker and how that output contributes to revenue.

1. Output with 1 Worker: 9 pairs of jeans

2. Output with 2 Workers: 19 pairs of jeans

3. Additional Output from the 2nd Worker: \[ 19 \text{ pairs} - 9 \text{ pairs} = 10 \text{ pairs} \]

4. Market Price per Pair of Jeans: $30

5. Marginal Revenue Product of Labor (MRP) is calculated as: \[ \text{MRP} = \text{Additional Output} \times \text{Price per Unit} \] Therefore: \[ \text{MRP} = 10 \text{ pairs} \times 30 \text{ dollars/pair} = 300 \text{ dollars} \]

Thus, the marginal revenue product of labor for the second worker is $300 per hour.

Therefore, the correct response is: $300 per hour.