Question

The Package Store hires workers to wrap packages. The store sells this service for $5. The marginal revenue product of this store's fifth worker is $50. The marginal product of the fifth worker is A) 0.01 package. B) 1 package. C) 10 packages. D) indeterminate from this information

Answer 1

Answer: 10 packages

Step-by-step explanation:

Marginal revenue (MR) is defined as an increase in the revenue that a company makes which is gotten from an additional sale that is made from a unit of output.

The marginal product of the fifth worker will be calculated as:

= Marginal Revenue Product / Price

= 50/5

= 10