If the marginal product of the second worker hired by a firm is 10 units and the price of a unit of output is $7 regardless of the quantity of output sold,then the marginal revenue product of the second worker is _____
A)$70.
B)$14.
C)$7.
D)$2.
E)$21.

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated by multiplying the marginal product (MP) of the worker by the price of the output. Here, MP = 10 units and price = $7, so MRP = 10 units * $7/unit = $70.

If the Marginal Product of the Second Worker Hired by a Firm