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

$270
per hour
270 dollars per hour

$840
per hour
840 dollars per hour

$300
per hour
300 dollars per hour

$570
per hour
570 dollars per hour
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Answer 1

Marginal product of the 2nd worker = 19 − 9 = 10 pairs.
MRP = 10 pairs × $30/pair = $300 per hour.

So the correct answer is $300 per hour.