Figure 10.2
-Figure 10.2 depicts a firm's marginal revenue product curve. If the marginal product of the second worker is 10 units of output, what is the price of output?

Question

Quizplus · Accepted Answer

The marginal revenue product of the second worker is equal to the price of output multiplied by the marginal product of the second worker. Since the marginal product of the second worker is 10 units of output, and the marginal revenue product of the second worker is $30, the price of output must be $3.

Figure 10.2 -Figure 10.2 Depicts a Firm's Marginal Revenue Product Curve. If