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

$840
per hour
840 dollars per hour

$300
per hour
300 dollars per hour

$570 per hour
570 dollars per hour

$270
per hour

Answer 1

To calculate the marginal revenue product of labor (MRP) for the second worker, we need to first determine the additional output produced by adding the second worker and then multiply that additional output by the price at which each pair of jeans is sold.

1. Output with one worker: 9 pairs of jeans
2. Output with two workers: 19 pairs of jeans

Additional output by the second worker: \[ \text{Additional output} = \text{Output with 2 workers} - \text{Output with 1 worker} = 19 - 9 = 10 \text{ pairs of jeans} \]

3. Price per pair of jeans: $30

Marginal Revenue Product (MRP) of the second worker: \[ \text{MRP} = \text{Additional output} \times \text{Price per pair} \] \[ \text{MRP} = 10 \text{ pairs} \times 30 \text{ dollars/pair} = 300 \text{ dollars} \]

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

$300 per hour.