Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 80 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is
A) $6.
B) $8.
C) $48.
D) $80.

Question

Quizplus · Accepted Answer

The Marginal Revenue Product (MRP) is calculated by multiplying the change in output (8 units) by the price per unit ($6), which equals $48.

Assume Labor Is the Only Variable Input and That an Additional