The following table shows the total output produced by different units of a resource.Assume that the resource and output markets are both perfectly competitive.The equilibrium price of the resource is $15.00,and the equilibrium price of the product is $0.50. Table 14.2
Marginal revenue product (MRP) of a resource is the product of the marginal product of the resource and the marginal revenue.
Refer to Table 14.2.How many units of the resource will a profit-maximizing firm hire?
A)Two labor hours
B)Between two and three labor hours
C)Between three and four labor hours
D)More than four labor hours
E)Three labor hours

Question

The following table shows the total output produced by different units of a resource.Assume that the resource and output markets are both perfectly competitive.The equilibrium price of the resource is $15.00,and the equilibrium price of the product is $0.50. Table 14.2
 Marginal revenue product (MRP) of a resource is the product of the marginal product of the resource and the marginal revenue.
Refer to Table 14.2.How many units of the resource will a profit-maximizing firm hire?
A)Two labor hours 
B)Between two and three labor hours 
C)Between three and four labor hours 
D)More than four labor hours 
E)Three labor hours

Quizplus · Accepted Answer

The Answer of The following table shows the total output produced by different units of a resource.Assume that the resource and output markets are both perfectly competitive.The equilibrium price of the resource is $15.00,and the equilibrium price of the product is $0.50. Table 14.2
 Marginal revenue product (MRP) of a resource is the product of the marginal product of the resource and the marginal revenue.
Refer to Table 14.2.How many units of the resource will a profit-maximizing firm hire?
A)Two labor hours 
B)Between two and three labor hours 
C)Between three and four labor hours 
D)More than four labor hours 
E)Three labor hours

The Following Table Shows the Total Output Produced by Different