Wei sells sandwiches for $10 each in a competitive product market. The marginal physical product for the third worker is eight. The marginal revenue product of the third worker is:
A) $40.
B) $60.
C) $80.
D) $100.

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated by multiplying the marginal physical product (MPP) by the price of the product. For the third worker, the MPP is 8 sandwiches, and each sandwich sells for $10. Therefore, MRP = 8 sandwiches * $10/sandwich = $80.

Wei Sells Sandwiches for $10 Each in a Competitive Product