Question

Frank Gunter owns an apple orchard. He employs52apple pickers and pays them​$8per hour to pick​ apples, which he sells for​$1.60per box. If Frank is maximizing​ profits, what is the marginal revenue productof the last worker he​ hired? What is that​ worker's marginal product​?Marginal revenue product of the lastworker______per hour. ​(Enter your response as an​ integer.)Marginal product of the lastworker_________boxes per hour. ​(Enter your response as an​integer.)

Answer 1

Answer:

The marginal revenue product of the last worker he​ hired is $8 per hour and the worker's marginal product is 5 boxes

Explanation:

The computation of the marginal revenue product of the last worker is shown below:

The marginal revenue product of the last worker would be $8 as the same wage rate is applied to all the workers.

And, the worker's marginal product would be equal to

= Wage rate per hour ÷ selling price per box

= $8 ÷ $1.60

= 5 boxes