Question

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day. If radios can be sold for $20 each, the value of marginal product of the ninth worker is a. $200. b. 20 radios. c. 90 radios. d. $400.

Answer 1

d. $400.

Step-by-step explanation:

The computation of the value of marginal product of the ninth worker is given below:

= (90 radios × $20) - (70 radios × $20)

= $1,800 - $1,400

= $400

Hence, the value of marginal product of the ninth worker is $400

Therefore the option d is correct