Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm.
TABLE 13-1
-Refer to Table 13-1.The marginal revenue product of the 14th unit of the factor is
A)-$60.
B)$60.
C)$140.
D)$700.
E)$840.

Question

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm.
  TABLE 13-1
-Refer to Table 13-1.The marginal revenue product of the 14th unit of the factor is
A)-$60. 
B)$60. 
C)$140. 
D)$700. 
E)$840.

Quizplus · Accepted Answer

The marginal revenue product of the 14th unit of the factor is $60. This is because the total revenue product of the 14th unit is $840, and the total revenue product of the 13th unit is $780. The difference between these two values is $60, which is the marginal revenue product of the 14th unit.

Consider the Following Production and Cost Schedule for a Firm