Exhibit 11-8

-Exhibit 11-8 shows data on the production of chocolate candy. If the firm sells chocolate for $3 a pound regardless of the quantity sold, the marginal revenue product of the third worker is
A) $0.60
B) $6
C) $0.30
D) $3
E) $90

Question

Exhibit 11-8
 
-Exhibit 11-8 shows data on the production of chocolate candy. If the firm sells chocolate for $3 a pound regardless of the quantity sold, the marginal revenue product of the third worker is
A) $0.60 
B) $6 
C) $0.30 
D) $3 
E) $90

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated by multiplying the marginal product of labor (additional output from one more worker) by the price of the product. If the third worker's marginal product is 30 pounds and the price is $3 per pound, then MRP = 30 * $3 = $90.

Exhibit 11-8 -Exhibit 11-8 Shows Data on the Production of Chocolate Candy