Asked by Skylar Nicholson on Apr 28, 2024
Verified
If the marginal product of a worker for a calculator manufacturer is 10 calculators, and the price of a calculator is $10, the firm's marginal revenue product is
A) $1.00.
B) $10.00.
C) $100.00.
D) $1,000.00.
Marginal Product
the increase in output resulting from the use of one more unit of a variable input, holding all other inputs constant.
Marginal Revenue Product
The additional revenue generated by employing one more unit of a particular input, keeping all other inputs constant.
Calculator Manufacturer
A company or entity involved in the production of calculators, ranging from basic to advanced scientific and graphing models.
- Understand the concept of marginal revenue product (MRP) and how it is calculated.
Verified Answer
KM
Keith MacNeilMay 01, 2024
Final Answer :
C
Explanation :
The marginal revenue product (MRP) is calculated by multiplying the marginal product of a worker by the price of the product. In this case, MRP = 10 calculators * $10/calculator = $100.
Learning Objectives
- Understand the concept of marginal revenue product (MRP) and how it is calculated.