If the marginal product of the second worker hired by a firm is 14 units and the price of a unit of output is $7 regardless of the quantity of output sold, then the marginal revenue product of the second worker is
A)$98
B)$14
C)$7
D)$2
E)$21

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated by multiplying the marginal product (MP) of the worker by the price of the output. Here, MRP = 14 units * $7 = $98.

If the Marginal Product of the Second Worker Hired by a Firm