Exhibit 10-1 Labor and output data In Exhibit 10-1, if product price is fixed at $8, the MRP of the 5th worker is equal to:

Question

Exhibit 10-1  Labor and output data  In Exhibit 10-1, if product price is fixed at $8, the MRP of the 5th worker is equal to:

Quizplus · Accepted Answer

MRP (Marginal Revenue Product) = Marginal Product x Product Price 
For the 5th worker: 
Marginal Product = 22 
Product Price = $8 
MRP = 22 x $8 = $176 
However, the MRP of the 4th worker is already $160, which means the addition of the 5th worker contributes an additional $16 to the total output. Therefore, the MRP of the 5th worker is $16.

Exhibit 10-1 Labor and Output Data in Exhibit 10-1, If