Question

Question
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)
Responses

$570
per hour
570 dollars per hour

$840
per hour
840 dollars per hour

$270
per hour
270 dollars per hour

$300
per hour
300 dollars per hour
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Answer 1

To calculate the marginal revenue product of labor (MRP) for the second worker, we first need to determine the additional output produced by that worker and then multiply that output by the market price of the jeans.

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

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

3. **Market price per pair of jeans**: $30

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

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