When Jim adds $1,000 worth of farm equipment to his production process, he finds tha this corn output increases from 200 to 350 bushels. If the price of corn is $2 per bushel, the marginal revenue product of capital is

Question

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The marginal revenue product (MRP) of capital is calculated by the increase in total revenue from the additional capital. Here, the increase in corn output is 150 bushels (350 - 200), and at $2 per bushel, the increase in revenue is $300 (150 bushels * $2/bushel).

When Jim Adds $1,000 Worth of Farm Equipment to His