A local laundry and dry cleaner collects the following data on its workforce productivity. Workers always work in teams of two, and the laundry and dry cleaner earns $3.00 of revenue for each shirl laundered.
| Quantity of Labor (L) (workers) |
Total Product(TP) (shirts laundered per hour) |
| 0 | 0 |
| 2 | 20 |
| 4 | 36 |
| 6 | 50 |
| 8 | 62 |
The marginal revenue product (MRP, $ per worker) for hiring the fifth and sixth workers is closest to:
Marginal Product (MP) is the amount of additional output resulting from using one more unit of input:/kTP//kL, where/kTP is the change in total product and/∆L is the change in total labor. Marginal revenue product is the marginal product of an input times the price of the product: MP × Price = ∆TP/∆L × Price. In this problem, the marginal product of hiring the fifth and sixth workers(∆L = 2) is 14 shirts per hour/2 workers = 7 shirts per hour/worker. With each shirt resulting in $3 of revenue, the MRP is 7 shirts per hour/worker × $3/shirt = $21 per worker.