Exhibit 10-2 Labor and output data $$\begin{array} { | c | c | }
\hline \text { Labor } & \text { Output } \
\hline 0 & 0 \
1 & 20 \
2 & 45 \
3 & 80 \
4 & 100 \
5 & 110 \
\hline
\end{array}$$ In Exhibit 10-2, if product price is fixed at $5, the MRP of the third worker is equal to:

Question

Exhibit 10-2 Labor and output data $$\begin{array} { | c | c | } 
\hline \text { Labor } & \text { Output } \
\hline 0 & 0 \
1 & 20 \
2 & 45 \
3 & 80 \
4 & 100 \
5 & 110 \
\hline
\end{array}$$ In Exhibit 10-2, if product price is fixed at $5, the MRP of the third worker is equal to:

Quizplus · Accepted Answer

The marginal revenue product (MRP) of the third worker is calculated by multiplying the marginal product of the third worker by the product price. The marginal product of the third worker is the change in output from hiring the third worker, which is 80 - 45 = 35. Therefore, the MRP is 35 * $5 = $175.

Exhibit 10-2 Labor and Output Data In Exhibit 10-2, If Product Price Is Fixed at $5