A bakery employs 5 workers who each produce 10 loaves of bread per hour. If the sale price per loaf is $2, what is the marginal revenue product of hiring a 6th worker, assuming that each additional worker also produces 10 loaves per hour? How should the bakery use this information to decide on hiring the additional worker?

To find the marginal revenue product of hiring a 6th worker, we first need to determine how much extra revenue this worker would generate. If the 6th worker produces 10 loaves of bread per hour and each loaf sells for $2, then the extra revenue from this worker would be 10 loaves times $2, which equals $20. This means the marginal revenue product of the 6th worker is $20 per hour. The bakery should compare this amount to the wage they would pay the new worker; if the wage is less than $20, it makes sense to hire the additional worker since they would contribute more to revenue than they cost. By using this information, the bakery can make smarter hiring decisions that help maximize their profits.