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Based on site visits to a number of mixed waste MRFs in California, equipment retrofits completed in the last three years cost $14.7 million and $26 million for 1,500 and 2,000 TPD mixed waste MRFs, respectively.
Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is: A. $6.