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Stephanie produces earrings. She sells each pair of earrings for [tex]\$5.00[/tex]. The table below shows how many pairs of earrings can be produced, depending on the number of workers Stephanie hires. Fill in the "Total Revenue" and "Marginal Revenue Product" columns using the information given. Assume this is a perfectly competitive market.

Instructions: Enter your answers as a whole number.

Stephanie's Earring Shop and Revenues

\begin{tabular}{|c|c|c|c|c|c|}
\hline
\begin{tabular}{c}
Labor \\
(workers)
\end{tabular} & \begin{tabular}{c}
Total Product \\
(pairs of earrings)
\end{tabular} & \begin{tabular}{c}
Marginal Product \\
(pairs of earrings)
\end{tabular} & \begin{tabular}{c}
Price \\
(dollars)
\end{tabular} & \begin{tabular}{c}
Total Revenue \\
(dollars)
\end{tabular} & \begin{tabular}{c}
Marginal Revenue Product \\
(dollars)
\end{tabular} \\
\hline
0 & 0 & - & \$5 & & \\
\hline
1 & 8 & 8 & \$5 & & \\
\hline
2 & 20 & 12 & \$5 & & \\
\hline
3 & 28 & 8 & \$5 & & \\
\hline
4 & 34 & 6 & \$5 & & \\
\hline
5 & 38 & 4 & \$5 & & \\
\hline
6 & 40 & 2 & \$5 & & \\
\hline
7 & 41 & 1 & \$5 & & \\
\hline
\end{tabular}



Answer :

GinnyAnswer
Certainly! Let's begin by completing the table with the "Total Revenue" and "Marginal Revenue Product" columns.

### Total Revenue
Total Revenue is calculated by multiplying the Total Product by the price of each product. The price given for each pair of earrings is \$5.00.

[tex]\[ \begin{aligned} &\text{For 0 workers:} &0 \times 5 &= \$0 \\ &\text{For 1 worker:} &8 \times 5 &= \$40 \\ &\text{For 2 workers:} &20 \times 5 &= \$100 \\ &\text{For 3 workers:} &28 \times 5 &= \$140 \\ &\text{For 4 workers:} &34 \times 5 &= \$170 \\ &\text{For 5 workers:} &38 \times 5 &= \$190 \\ &\text{For 6 workers:} &40 \times 5 &= \$200 \\ &\text{For 7 workers:} &41 \times 5 &= \$205 \\ \end{aligned} \][/tex]

### Marginal Revenue Product
Marginal Revenue Product is calculated by multiplying the Marginal Product by the price.

[tex]\[ \begin{aligned} &\text{For 1 worker:} &8 \times 5 &= \$40 \\ &\text{For 2 workers:} &12 \times 5 &= \$60 \\ &\text{For 3 workers:} &8 \times 5 &= \$40 \\ &\text{For 4 workers:} &6 \times 5 &= \$30 \\ &\text{For 5 workers:} &4 \times 5 &= \$20 \\ &\text{For 6 workers:} &2 \times 5 &= \$10 \\ &\text{For 7 workers:} &1 \times 5 &= \$5 \\ \end{aligned} \][/tex]

Now, adding these values to the table:

[tex]\[ \begin{array}{|c|c|c|c|c|c|} \hline \text{Labor} (\text{workers}) & \text{Total Product} (\text{pairs of earrings}) & \text{Marginal Product} (\text{pairs of earrings}) & \text{Price} (\text{dollars}) & \text{Total Revenue} (\text{dollars}) & \text{Marginal Revenue Product} (\text{dollars}) \\ \hline 0 & 0 & - & 5 & 0 & - \\ \hline 1 & 8 & 8 & 5 & 40 & 40 \\ \hline 2 & 20 & 12 & 5 & 100 & 60 \\ \hline 3 & 28 & 8 & 5 & 140 & 40 \\ \hline 4 & 34 & 6 & 5 & 170 & 30 \\ \hline 5 & 38 & 4 & 5 & 190 & 20 \\ \hline 6 & 40 & 2 & 5 & 200 & 10 \\ \hline 7 & 41 & 1 & 5 & 205 & 5 \\ \hline \end{array} \][/tex]

This completes the table with the correct values for Total Revenue and Marginal Revenue Product.

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