-In Exhibit Q-4, if the price of a bicycle helmet is $10 and the firm increases its quantity of loanable funds demanded from $3,000 to $4,000, then the MRP per dollar is

Question

Quizplus · Accepted Answer

The MRP per dollar is calculated by dividing the increase in revenue by the increase in investment. Here, the increase in revenue is $10 (the price of a bicycle helmet), and the increase in investment is $1,000 (from $3,000 to $4,000). Thus, MRP per dollar = $10 / $1,000 = 0.01 or 1%. However, given the options do not align with this calculation, it seems there might be a misunderstanding in the interpretation of the question or a mistake in the calculation process based on the provided options. The correct approach to find the MRP per dollar involves understanding the additional revenue generated per additional dollar invested, which typically would follow the formula mentioned. If we were to assume a direct relationship between the increase in loanable funds and the increase in revenue generated (which is not directly provided here), the correct answer would require more specific information from Exhibit Q-4 to accurately calculate the MRP per dollar. Given the options and the typical way to calculate MRP per dollar, none of the provided choices directly match the expected calculation, indicating a possible error in the question interpretation or a need for additional information from Exhibit Q-4.

-In Exhibit Q-4, If the Price of a Bicycle Helmet