To determine the marginal revenue product of labor (MRP) for the second worker, we need to follow these steps:
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Calculate the increase in output by adding the second worker.
- Output with one worker: 9 pairs of jeans
- Output with two workers: 19 pairs of jeans
- Increase in output = Output with two workers - Output with one worker = 19 - 9 = 10 pairs of jeans.
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Calculate the marginal revenue product of the second worker.
- MRP = Increase in output × Market price of the product
- Market price for a pair of jeans = $30
- MRP = 10 pairs × $30 per pair = $300.
Therefore, the marginal revenue product of labor for the second worker is $300 per hour.
So, the correct response is:
$300 per hour.