Exhibit 26-5

-Refer to Exhibit 26-5. The marginal revenue product of the fourth unit of labor is

Question

Exhibit 26-5
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-Refer to Exhibit 26-5. The marginal revenue product of the fourth unit of labor is

Quizplus · Accepted Answer

The marginal revenue product (MRP) of labor is calculated by multiplying the marginal product (MP) of labor by the price of the output. For the fourth unit of labor, the MP is 10 units (from the difference in total product between the fourth and third units of labor, which is 40 - 30 = 10) and the price per unit is $100. Therefore, MRP = 10 units * $100/unit = $1,000.

Exhibit 26-5 ​

Exhibit 26-5