The following table shows the marginal productivity of different units of labor for producing a product. Table 14.4
In the table,
MR: Marginal Revenue
MPP: Marginal Physical Product
According to Table 14.4,what is the highest MRP the firm can reach? (MRP = MPP ´ MPP)
A)5
B)6
C)15
D)18
E)25

Question

The following table shows the marginal productivity of different units of labor for producing a product. Table 14.4
 In the table,
MR: Marginal Revenue
MPP: Marginal Physical Product
According to Table 14.4,what is the highest MRP the firm can reach? (MRP = MPP ´ MPP)
A)5 
B)6 
C)15 
D)18 
E)25

Quizplus · Accepted Answer

To find the highest MRP, we need to calculate the product of the highest MPP and its corresponding MR. Looking at the table, the highest MPP is 6, and the corresponding MR is 3. Thus, the highest MRP is 6 x 3 = 18. Therefore, the best choice is D.

The Following Table Shows the Marginal Productivity of Different Units