In a market economy, firms with more workers can make and sell more output€”that goes without saying. The marginal product of labor tells you how much extra revenue each extra worker generates. Economists tend to use one particular equation a lot to sum up the link between workers, revenue, and the marginal product of labor: We call it the production function. Let€™s practice with it just a little here.
a. At Dunder Mifflin, the hourly revenue production function works like this:
Revenue = 100 × ˆšNumber of semiskilled workers
This is a way of saying that in order to sell product, you actually need workers to do work. Use this formula to fill out the €œTotal Revenue€ column in the next table.

b. As we mentioned in the chapter, the marginal product of labor is the extra revenue that€™s generated by each extra worker. It€™s the change in revenue from adding one more worker. Fill out that column, as well.
c. If the market wage for semiskilled workers is $25 per hour, how many workers should Dunder Mifflin hire?

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Number of Workers Total Revenue() Marginal Product of LabortS) 100 141 N/A 100 41