Asked by Islam Soliman on Jun 12, 2024
Verified
Refer to Table 10.2. Marginal revenue product of the ________ worker is $250.
A) second
B) third
C) fourth
D) fifth
Marginal Revenue Product
The increased earnings resulting from the utilization of one more production factor unit.
- Analyze marginal revenue product (MRP) and its role in determining the optimal level of labor employment.
- Decipher tables and graphs associated with labor and product markets to guide informed economic judgments.
Verified Answer
SN
siyabonga ntelaJun 17, 2024
Final Answer :
B
Explanation :
The marginal revenue product (MRP) is calculated by multiplying the marginal product (MP) of labor by the price per unit of output. For the third worker, the MP is the difference in total product between 3 and 2 workers, which is 55 - 30 = 25 frames. Since the price per frame is $10, the MRP = 25 frames * $10/frame = $250.
Learning Objectives
- Analyze marginal revenue product (MRP) and its role in determining the optimal level of labor employment.
- Decipher tables and graphs associated with labor and product markets to guide informed economic judgments.