Use the following to answer question(s):
-(Exhibit: Marginal Revenue Product and Demand) If the product price is $2 per unit, the marginal revenue product for the fifth unit of the variable input is:
A) $0.
B) $20.
C) $40.
D) $60.

Question

Use the following to answer question(s):  
-(Exhibit: Marginal Revenue Product and Demand) If the product price is $2 per unit, the marginal revenue product for the fifth unit of the variable input is:
A) $0. 
B) $20. 
C) $40. 
D) $60.

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated as the additional revenue generated from using one more unit of the input. It is determined by multiplying the marginal product (MP) of the input by the price of the output. For the fifth unit, the MP is 20 units of output. Given the product price is $2 per unit, the MRP = 20 units * $2/unit = $40.

Use the Following to Answer Question(s)