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

$570 per hour
570 dollars per hour

$300 per hour
300 dollars per hour

$840 per hour
840 dollars per hour

$270 per hour

Answer 1

To determine the marginal revenue product of labor (MRP) for the second worker, we need to follow these steps:

1. 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.

2. 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.