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.
B) $12.
C) $36.
D) $72.

Question

Zybrea Knight · Accepted Answer

Final Answer : C, Explanation :  The MRP (Marginal Revenue Product) is calculated by multiplying the marginal product of labor (the additional output created by the additional worker, which is 78 - 72 = 6 units) by the price of the product ($6). Therefore, MRP = 6 units * $6/unit = $36.

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.
B) $12.
C) $36.
D) $72.

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Learning Objectives

Related questions

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.B) $12.C) $36.D) $72.

Definitions

Learning Objectives

Learning Objectives

Related questions

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.
B) $12.
C) $36.
D) $72.