Table 14.2
$\begin{array}{|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity of } \
\text { labour }
\end{array} & \begin{array}{c}
\text { Output of iPods per } \
\text { Week }
\end{array} & \begin{array}{c}
\text { Marginal Product of } \
\text { labour }
\end{array} & \begin{array}{c}
\text { Product Price } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Wage } \
\text { (dollars) }
\end{array} \
\hline 1 & 8 & 8 & \$ 300 & \$ 350 \
\hline 2 & 15 & 7 & 280 & 350 \
\hline 3 & 21 & 6 & 260 & 350 \
\hline 4 & 26 & 5 & 240 & 350 \
\hline 5 & 30 & 4 & 220 & 350 \
\hline 6 & 33 & 3 & 200 & 350 \
\hline 7 & 35 & 2 & 180 & 350 \
\hline
\end{array}$
-Refer to Table 14.2.The marginal revenue product of labour from the third unit of labour is

Question

Table 14.2
 $\begin{array}{|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity of } \
\text { labour }
\end{array} & \begin{array}{c}
\text { Output of iPods per } \
\text { Week }
\end{array} & \begin{array}{c}
\text { Marginal Product of } \
\text { labour }
\end{array} & \begin{array}{c}
\text { Product Price } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Wage } \
\text { (dollars) }
\end{array} \
\hline 1 & 8 & 8 & \$ 300 & \$ 350 \
\hline 2 & 15 & 7 & 280 & 350 \
\hline 3 & 21 & 6 & 260 & 350 \
\hline 4 & 26 & 5 & 240 & 350 \
\hline 5 & 30 & 4 & 220 & 350 \
\hline 6 & 33 & 3 & 200 & 350 \
\hline 7 & 35 & 2 & 180 & 350 \
\hline
\end{array}$
-Refer to Table 14.2.The marginal revenue product of labour from the third unit of labour is

Quizplus · Accepted Answer

The marginal revenue product (MRP) of labour is equal to the marginal product of labour (MPL) multiplied by the product price (P).

Thus, the MRP of the third unit of labour is MPL × P = 6 × $260 = $1,560. Therefore, the best choice is (C).

Table 142 -Refer to Table 14