Table 11.5
$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Units of } \
\text { Variable } \
\text { Resource }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Product }
\end{array} & \begin{array} { c }
\text { Product } \
\text { Price } ( \$ )
\end{array} \
\hline 0 & 0 & 22 \
\hline 1 & 15 & 20 \
\hline 2 & 29 & 18 \
\hline 3 & 42 & 16 \
\hline 4 & 54 & 14 \
\hline 5 & 65 & 12 \
\hline 6 & 75 & 10 \
\hline 7 & 84 & 8 \
\hline 8 & 92 & 6 \
\hline 9 & 99 & 4 \
\hline 10 & 105 & 2 \
\hline
\end{array}$$
-Refer to Table 11.5,which shows data for a firm.The first column shows the number of variable resources employed in production,the second column shows firm's total product,and the third column shows its product price.The firm will hire the fourth unit of resource when the marginal revenue product of the fourth unit is _____
A)$14.
B)$24.
C)$168.
D)$84.
E)$756.

Question

Table 11.5
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Units of } \
\text { Variable } \
\text { Resource }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Product } \
\text { Price } ( \$ )
\end{array} \
\hline 0 & 0 & 22 \
\hline 1 & 15 & 20 \
\hline 2 & 29 & 18 \
\hline 3 & 42 & 16 \
\hline 4 & 54 & 14 \
\hline 5 & 65 & 12 \
\hline 6 & 75 & 10 \
\hline 7 & 84 & 8 \
\hline 8 & 92 & 6 \
\hline 9 & 99 & 4 \
\hline 10 & 105 & 2 \
\hline
\end{array}$$
-Refer to Table 11.5,which shows data for a firm.The first column shows the number of variable resources employed in production,the second column shows firm's total product,and the third column shows its product price.The firm will hire the fourth unit of resource when the marginal revenue product of the fourth unit is _____
A)$14.
B)$24.
C)$168.
D)$84.
E)$756.

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated by multiplying the marginal product (MP) of the resource by the price of the product. For the fourth unit of resource, the MP is the change in total product from the third to the fourth unit, which is $54 - 42 = 12$ units. The price at which the fourth unit is sold is $14. Therefore, MRP = 12 units * $14 = $168.

Table 115 -Refer to Table 11