If one more cobbler is hired the output of a shoe making unit will increase from 50 pairs of shoes to 55 pairs per day, but then the shoe making unit - General Awareness MCQ SSC CGL 2026 | ExamTest.live

mediumMCQSSC CGL2026General Awareness

1 mark

If one more cobbler is hired the output of a shoe making unit will increase from 50 pairs of shoes to 55 pairs per day, but then the shoe making unit will have to reduce the price of a pair of shoes from Rs 3200 to Rs 3000 per pair to sell the additional output, the marginal revenue product of the last cobbler is

Solution & Step-by-step Explanation

Marginal Revenue Product (MRP) is the change in total revenue resulting from employing an additional unit of labor. Initial Total Revenue (TR_{1}): TR_{1} = 50 \times 3200 = Rs 1, 60, 000 New Total Revenue (TR_{2}): TR_{2} = 55 \times 3000 = Rs 1, 65, 000 Marginal Revenue Product (MRP): MRP = TR_{2} - TR_{1} = 1, 65, 000 - 1, 60, 000 = Rs 5, 000

Try it yourself before checking the explanation above.

If one more cobbler is hired the output of a shoe making unit will increase from 50 pairs of shoes to 55 pairs per day, but then the shoe making unit will have to reduce the price of a pair of shoes from Rs 3200 to Rs 3000 per pair to sell the additional output, the marginal revenue product of the last cobbler is

Rs 1000

Rs 5000

Rs 4000

Rs 200

Practice with timed mock tests and track your performance across General Awareness.