If the principles of economics section is three credit hours and an instructor teaches two sections with 100 students in each and tuition and fees at your school are $500 per credit hour, then the marginal revenue product for your school from hiring that instructor that semester is

Question

Quizplus · Accepted Answer

The marginal revenue product for the school from hiring that instructor for that semester is calculated by multiplying the number of students (200 in total, from two sections of 100 each) by the cost per credit hour ($500) and then by the number of credit hours (3). This gives a total of $300,000.

If the Principles of Economics Section Is Three Credit Hours