Table 11.3
$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Pounds of } \
\text { Candy }
\end{array} & \begin{array} { c }
\text { Units of } \
\text { Labor }
\end{array} \
\hline 80 & 1 \
\hline 120 & 2 \
\hline 150 & 3 \
\hline
\end{array}$$
-Refer to Table 11.3,which shows data of a firm producing chocolate candies.If the firm sells chocolate candies for $3 per pound regardless of the quantity sold,the marginal revenue product of the third worker is _____
A)$0.60.
B)$6.
C)$0.30.
D)$3.
E)$90.

Question

Table 11.3
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Pounds of } \
\text { Candy }
\end{array} & \begin{array} { c } 
\text { Units of } \
\text { Labor }
\end{array} \
\hline 80 & 1 \
\hline 120 & 2 \
\hline 150 & 3 \
\hline
\end{array}$$
-Refer to Table 11.3,which shows data of a firm producing chocolate candies.If the firm sells chocolate candies for $3 per pound regardless of the quantity sold,the marginal revenue product of the third worker is _____
A)$0.60.
B)$6.
C)$0.30.
D)$3.
E)$90.

Quizplus · Accepted Answer

The marginal revenue product (MRP) of the third worker is calculated by multiplying the marginal product (MP) of labor by the price of the product. The MP of the third worker is the additional output produced by the third worker, which is 150 pounds (total output with 3 workers) - 120 pounds (total output with 2 workers) = 30 pounds. Since the firm sells chocolate candies for $3 per pound, the MRP = 30 pounds * $3/pound = $90.

Table 113 -Refer to Table 11