When 5 units of labor are employed, total product is 9 units; when 6 units of labor are employed, total product is 11 units of output. If the price of output is $5 per unit, what is the marginal revenue product of the 6th unit of labor?

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) of the 6th unit of labor is calculated by the additional output it produces (which is 11 - 9 = 2 units) multiplied by the price of output ($5). So, MRP = 2 units * $5/unit = $10.

When 5 Units of Labor Are Employed, Total Product Is