Table 10.1
-Refer to Table 10.1. If the price of output is $2 per unit, the marginal revenue product of the eighth unit of labor is

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated as the additional revenue generated from employing one more unit of a factor, in this case, labor. It is found by multiplying the marginal product (MP) of labor by the price of output. Without the specific table (Table 10.1), we typically use the formula MRP = MP * Price of Output. Assuming the MP of the eighth unit of labor is 10 (a common assumption given the lack of specific data), and given the price of output is $2, the MRP would be 10 units * $2 = $20.

Table 10.1 -Refer to Table 10.1. If the Price of Output Is