Refer to the data provided in Table 10.2 below to answer the following question(s).
Table 10.2 $$\begin{array} { c c c }
\begin{array} { c }
\text { Total Labor Units } \
\text { (employees) }
\end{array} & \begin{array} { c }
\text { Total Product } \
\text { (frames per day) }
\end{array} & \begin{array} { c }
\text { Price per } \
\text { Frame }
\end{array} \
\hline 0 & 0 & \$ 10 \
1 & 10 & \$ 10 \
2 & 30 & \$ 10 \
3 & 55 & \$ 10 \
4 & 70 & \$ 10 \
5 & 82 & \$ 10
\end{array}$$
-Refer to Table 10.2. Marginal revenue product of the ________ worker is $250.
A) second
B) third
C) fourth
D) fifth

Question

Refer to the data provided in Table 10.2 below to answer the following question(s).
Table 10.2 $$\begin{array} { c c c } 
\begin{array} { c } 
\text { Total Labor Units } \
\text { (employees) }
\end{array} & \begin{array} { c } 
\text { Total Product } \
\text { (frames per day) }
\end{array} & \begin{array} { c } 
\text { Price per } \
\text { Frame }
\end{array} \
\hline 0 & 0 & \$ 10 \
1 & 10 & \$ 10 \
2 & 30 & \$ 10 \
3 & 55 & \$ 10 \
4 & 70 & \$ 10 \
5 & 82 & \$ 10
\end{array}$$
-Refer to Table 10.2. Marginal revenue product of the ________ worker is $250.
A) second
B) third
C) fourth
D) fifth

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated by multiplying the marginal product (MP) of labor by the price per unit of output. For the third worker, the MP is the difference in total product between 3 and 2 workers, which is 55 - 30 = 25 frames. Since the price per frame is $10, the MRP = 25 frames * $10/frame = $250.

Refer to the Data Provided in Table 10 -Refer to Table 10