Exhibit 27-5

-Refer to Exhibit 27-5.The marginal revenue product of the fourth unit of labor is

Question

Exhibit 27-5
 
-Refer to Exhibit 27-5.The marginal revenue product of the fourth unit of labor is

Quizplus · Accepted Answer

The marginal product of the fourth unit of labor is 6. The marginal revenue product of the fourth unit of labor can be calculated by multiplying the marginal product by the price of the output, which is $60. Therefore, the marginal revenue product of the fourth unit of labor is $360. This is the additional revenue that the firm would earn by hiring one more unit of labor. As long as the wage rate is less than or equal to $360, the firm should hire additional workers to increase its profits.

Exhibit 27-5 -Refer to Exhibit 27-5.The Marginal Revenue Product of the Fourth